ProfitMax Performance Evaluation Cloud Software Essay

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Instructions

ProfitMax Performance Evaluation Cloud Software Essay

Question Description

ProfitMax Performance Evaluation Cloud Software, LLC sells five (5) highly sophisticated and integrated information system analytics products, identified as Product: Financial Performance, Optimization Analytics, Descriptive Analytics, Predictive Analytics, and Prescriptive Analytics.

You are being asked to determine the profitability of one customer and also determine the customer profit margin, by product sold. Philadelphia Strategic Analytics Implementers is the customer in question and management is concerned that the operations result are not truly indicative of operation costs and are looking to evaluate the profitability of the customer.

You are given two informational tables, one with detail information for each of the products and another table for the purpose of calculating the ABC activity rates (POR).

ProfitMax Performance Evaluation Cloud Software, LLC has recently implemented an ABC system. The system implemented activity cost pools for the following:

Activity Cost Pool	Activity Rate
Consulting support	? – to be calculated	per Direct Labor Hour
Fee structure support	? – to be calculated	per order processed
Implementation design	? – to be calculated	per custom design
Design analysis	? – to be calculated	per Direct Labor Hour
Customer service	? – to be calculated	per Customer

The detail information in the first table indicate the selling price per unit, the direct material and direct labor costs, and the ABC activity costs per product. Complete the first table indicating the revenues and cost for each product and in total. Calculate the product profit margin for each product and the total customer margin for the customer. Also calculate the total customer profit margin percent for the customer.

Customer Service (Activity Pool) is a customer level activity—all other activity pools are product level costs. I.e. you should only charge Customer Service once to the customer and not to any particular product

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RUBRIC
Excellent Quality 95-100%	Introduction 45-41 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.		Literature Support 91-84  points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.			Methodology 58-53 points Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score 50-85%	40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.		83-76  points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.			52-49  points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality 0-45%	37-1 points The background and/or significance are missing. No search history information is provided.		75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.			48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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