Cortez Corporation has analyzed its customer and order handling data for the past year and has determined the following costs:
Order processing cost per order $6
Additional costs if order must be expedited (Rushed) $9
Customer technical support calls (Per call) $7
Relationship management costs (Per customer per year) $1,900
In addition to these costs, product costs amount to 80 percent of sales. In the prior year, Cortez had the following experience with one of its customers, Green Company:
Sales $26,000
Number of orders 170
Percent of orders marked rush 80
Calls to technical support 90
Calculate the profitability of the Green Company account.
A. $1,226
B. Some other answer
C. $20,226
D. $226