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Social Science Clinic => Accounting => Topic started by: Adc3669 on Feb 5, 2023

Title: Unprofitable customers should be
Post by: Adc3669 on Feb 5, 2023

Question 1

The formula for the customer profit margin is customer
◦ net profit divided by customer revenue.
◦ profit margin less allocated selling and administrative expenses.
◦ revenue divided by customer cost of goods sold.
◦ revenue less cost of goods sold less allocated selling expenses.

Question 2

Unprofitable customers should be
◦ evaluated for implications that any action will have on the customer.
◦ assessed fees to cover extra costs incurred by the company to service the customer.
◦ dropped to prevent further profit reductions.
◦ evaluated for implications that any action will have on the customer, other customers and the company.

Title: Unprofitable customers should be
Post by: SphnxKickin on Feb 5, 2023

Answer 1

net profit divided by customer revenue.

Answer 2

evaluated for implications that any action will have on the customer, other customers and the company.