Question Details

Handy-Man Services is a repair-service company 



1.	Handy-Man 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 Revenues	Customer Costs
	Marveline Burnett	$300	$225
	J Jackson	200	305
	Roger Jones	80	75
	Paul Saas	75	110
	Becky Stephan	350	220

	Required:
	a.	Compute the operating income for each of the five customers.
	b.	What options should Handy-Man Services consider in light of the customer-profitability results?
	c.	What problems might Handy-Man Services encounter in accurately estimating the operating costs of each customer?





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