Question: 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
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:
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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.
Quinn Raph Sutlffe Th orme Cases sold Achial price Number of orders Customer visits Deliveries Miles/delivery Expedited deliveries 8,750 60,800 31,800 3,900 $14.1613.20 $1392 $12.96 30 25 30 25 30 60 40 20 43 8 40
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The following table presents the profitability of each customer Quinn Ralph Sutliffe Thorne Cases so... View full answer
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