Ramsey Foods Has Analyzed Its Customer and Order Handling Data

question 79

Multiple Choice

Ramsey Foods has analyzed its customer and order handling data for the past year and has determined the following costs: $$\begin{array} { l r } \text { Order processing cost per order } & \$ 5.50 \\\text { Additional costs if order must be expedited (Per order) } & \$ 6.00 \\\text { Customer technical support calls (Per call) } & \$ 3.50 \\\text { Relationship management costs (Per customer per year) } & \$ 1,900\end{array}$$ 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: $$\begin{array} { l c } \text { Sales } & \$ 18,000 \\\text { Number of orders } & 28 \\\text { Percent of orders marked rush } & 25 \% \\\text { Calls to technical support } & 14\end{array}$$
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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