Microdot Inc. sells and distributes computer networking equipment; its overall margin on sales is 10%. Microdot has
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Required
1. Calculate operating income per customer in each year.
2. Microdot estimates the value of each kind of customer by calculating the customer's projected NPV over the total expected time of the contract. Use the operating incomes calculated above to compute the value of each kind of customer.
3. Indicate which type of customer is more profitable for Microdot Inc.
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133138443
7th Canadian Edition
Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham
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