Calculate the expected customer - level operating income for the six customers

Case 4: Bethilda’s Brooms (18 marks)
1. Calculate the expected customer - level operating income for the six customers. Use the number of written orders at $30 each to calculate expected order costs. (6marks)
2. Recalculate the customer-level operating income using the number of written orders but at their actual $12 cost per order instead of $30 (except for Brooms ‘R Us, whose actual cost is $30 per order). What will Bethilda’s assessment of customer-level (and salespeople) performance be for this period? (ie. Did they perform better or worse thanexpected?)
(6 marks)
3. Recalculatethecustomer-leveloperatingincomeifsalespeoplehadnotbrokenupactualordersinto multiple smaller orders. Don’t forget to also adjust sales commissions. (3marks)
4. How is the behaviour of the salespeople affecting the profit of Belinda’s Brooms? Is their behaviour ethical? What can Bethilda do to change their behaviour? (3marks)

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