Colise Services Is a Repair-Service Company Specializing in Small Household

question 55

Essay

Colise Services is a repair-service company specializing in small household jobs.Each client pays a fixed monthly service fee based on the number of rooms in the house.Records are kept on the time and material costs used for each repair.The following profitability data apply to five customers:
$\begin{array}{lrr}&\text { Customer Revenues }&\text { Customer Costs }\\\text { Marveline Burnett } & \$ 360 & \$ 270 \\\text { J Jackson } & 240 & 366 \\\text { Roger Jones } & 96 & 90 \\\text { Paul Saas } & 90 & 132 \\\text { Becky Stephan } & 420 & 264\end{array}$ Required:
a.Compute the operating income for each of the five customers.
b.What options should Colise Services consider in light of the customer-profitability results?
c.What problems might Colise Services encounter in accurately estimating the operating costs of each customer?

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Definitions:

Arbitration

A method of dispute resolution involving a neutral third party who makes a binding decision.

Conciliation

A process where a third party assists in resolving disputes between two parties by encouraging them to reach a mutual agreement.

Union Push Explanation

An explanation that addresses the reasons behind a labor union's efforts to organize workers, negotiate better terms, or take collective action.

Grievance Representation

The process of handling complaints by employees against employers or managers, often involving a representative or union to advocate on the employee's behalf.