1. Related to Problem 1, compute the operating income for each of the five customers.
2. Related to Problem 1, what options should Handy-Man Services consider in light of the customer-profitability results?
3. Related to Problem 1, what problems might Handy-Man Services encounter in accurately estimating the operating costs of each customer?
4. Related to Problem 2, compute the payback period, net present value, and accrual accounting rate of return with initial investment, for each proposal. Use a required rate of return of 14%.
5. Related to Problem 2, rank each proposal 1, 2, and 3 using each method separately. Which proposal is best? Why?