Rite Products has determined

Rite Products has determined the following costs:

Order processing (Per order)                                                                           $   8.00

Additional handling costs if order marked rush (Per order)                              10.00

Customer service calls (Per call)                                                                        14.00

Relationship management costs (Per customer per year)                                   3,500

In addition to these costs, product costs amount to 85 percent of sales. In the prior year, Rite had the following experience with one of its customers, Ward, Inc.:

Sales                                               $54,000

Number of orders                                  250

Percent of orders marked rush                70

Calls to customer service                      160

Required:

Calculate the profitability of the Ward account.