The customer-profitability analysis for Patio Grill Company, which is displayed in Exhibit 5€“14, ranks customers by operating income. An alternative, often-used approach is to rank customers by sales revenue.
In Exhibit 5€“14,

Required:
1. List the customer numbers in the left-hand column of Exhibit 5€“14 by sales revenue, from highest to lowest. Is the ranking different from that in Exhibit 5€“14?
2. Patio Grill Company€™s smallest customers, in terms of sales revenue, are last in the listing prepared for requirement (1). Are these customers the company€™s least profitable?
3. Would the customer-profitability profile in Exhibit 5€“15 be different if the customers were ranked by sales revenue instead of operating income? Explain.
4. What factors could cause a larger customer (in terms of sales revenue) to be less profitable than a smallercustomer?

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Cumulative Operating ncome as a Customer Customer Customer Cumulative Customer Sales Revenue GrossOperating Operating Percentage of Total Margin Code Income Income Operating Income 6,500,000 1,610,000 S 378,530 378,530 6,964,000 6,694,000 5,846,000 8.8% 17.3 25.5% 33.4% 41.1% 48.8% 370,000 351,000 340,000 1.430,000336,070 331,000 330,000 300,000 281,400 276,000 270,000 251,400 219,920 205,000 199,300 82,000 5,600 (19,050 102,600 1,570,000 1.484,300 1,461,600 748,530 1,099,530 1,439,530 1,775,600 2,106,600 2,436,600 2,736,600 3,018,000 3,294,000 3,564,000 3,815,400 4,035,320 4,240,320 4,439,620 4,521,620 4,557,220 4,538,170 4,435,570 4,316,37 121 124 127 5,400,000 5.601,000 5,090,000 4,760.000 5,000,200 4.431,000 4,008,000 4,490,000 4.200,000 4,320,000 1.920,000 1,641,000 3,480,000 2.820.000 1,960,000 1,413,000 1,405.520 1,280,020 1.160,200 1.181.000 1.150,000 1,059,800 1,110,00 63.4% 69.9% 76.3% 82.5% 80.4 93.5 125 876,220 1.100,000 351,200 139,400 670,000 102.9% 104.8% 105.6 105.1% 102.8% 100.0% 137 119 430,000