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Author Question: Colise Services is a repair-service company specializing in small household jobs. Each client pays a ... (Read 32 times)

james0929

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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:

Customer RevenuesCustomer Costs
Marveline Burnett$360$270
J Jackson240366
Roger Jones9690
Paul Saas90132
Becky Stephan420264

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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Marked as best answer by james0929 on Mar 6, 2021

asware1

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james0929

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)


TheNamesImani

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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