Ramsey Foods Has Analyzed Its Customer and Order Handling Data

question 66

Multiple Choice

Ramsey Foods has analyzed its customer and order handling data for the past year and has determined the following costs: $\begin{array}{lr}\text { Order processing cost per order } & \$ 5.50 \\\text { Additional costs if order must be expedited (Per order) } & \$ 6.00 \\\text { Customer technical support calls (Per call) } & \$ 3.50 \\\text { Rel ationship management costs (Per customer per year) } & \$ 1,900\end{array}$ In addition to these costs, product costs amount to 75% of sales. In the prior year, Ramsey had the following experience with one of its customers, Turnkey Enterprises: $$\begin{array} { l l } \text { Sales } & \$ 18,000 \\\text { Number of orders } & 28 \\\text { Percent of orders marked rush } & 25 \% \\\text { Calls to technical support } & 14\end{array}$$
Calculate the profit earned on the Turnkey Enterprises account.

• A) $2,355
• B) $4,153
• C) $4,482
• D) $2,229

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Definitions:

Philippine Exhibit

A display or presentation showcasing aspects of Philippine culture, history, or achievements, potentially as part of a larger exhibition or fair.

St. Louis World's Fair

Also known as the Louisiana Purchase Exposition, it was an international exhibition held in 1904 in St. Louis, Missouri, to celebrate the centennial of the 1803 Louisiana Purchase.

United Fruit Company

A U.S.-based corporation that was a major producer and marketer of fruit and other foods, primarily bananas, and had significant influence in Latin America.

Indochina

A region in Southeast Asia, comprising the countries of Vietnam, Laos, and Cambodia, notable for its colonial history under French rule and subsequent conflicts.