Business
Business, 25.10.2019 03:43, paralaw61772

Customer profitability analysisroland, inc. provides residential painting services for three home building companies, alpha, beta, and gamma, and it uses a job costing system for determining the costs for completing each job. the job cost system does not capture any cost incurred by roland for return touchups and refinishes after the homeowner occupies the home. roland paints each house on a square footage contract price, which includes painting as well as all refinishes and touchups required after the homes are occupied. each year, roland generates about one-third of its total revenues and gross profits from each of the three builders. roland has observed that the builders, however, require substantially different levels of support following the completion of jobs. the following data have been gathered: support activity driver costs per driver unitmajor refinishes hours on job $20touchups number of visits $110communication number of calls $10builder major refinishes touchups communicationalpha 80 150 360beta 35 110 205gamma 42 115 190(a) assuming that each of the three customers produces gross profits of $100,000, calculate the profitability from each builder after taking into account the support activity required for each builder. alpha$answerbeta$answergamma$answer

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Customer profitability analysisroland, inc. provides residential painting services for three home bu...

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