Aqua Distribution buys bottled water at $12 per case and sells it to retail clients at $14.40

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Aqua Distribution buys bottled water at $12 per case and sells it to retail clients at $14.40 per case. Data pertaining to four customers are as follows:


Aqua Distribution buys bottled water at $12 per case and


The firm estimates the following rates:
Number of orders .... $100 per order (number of cases in a order varies)
Customer visits .... $80 per visit
Delivery ........ $2 per delivery mile traveled
Product handling ... $0.50 per case sold
Expedited deliveries .. $300 per incident

Required:
Evaluate customer profitability and suggest remedial actions ifnecessary.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Related Book For  book-img-for-question

Managerial accounting

ISBN: 978-0471467854

1st edition

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

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