AquaSports sells two types of Kayak - the River Runner and the Sea Force. The following...

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AquaSports sells two types of Kayak - the River Runner and the Sea Force. The following data has been provided: Cost per unit Markup Rebate* Customer-level information Water Adventures Sea Level Sports Lake Touring Bay Boating Serious Fishing River Runner $500 40% 15% Sales units by customer River Runner Sea Force 2,000 220 Sea Force $950 70% 10% 450 120 760 3,550 1,700 80 290 95 210 2,375 Order & dispatch $750 Number of orders 25 10 25 45 40 145 Exchange handling $650 Number of exchanges 30 45 70 75 230 450 Complimentary Customisations $90 a) Calculate profitability by customer showing detail line-by-line (25 marks) b) Create a customer ranking table (10 marks) Number of customisations 650 20 5 90 300 1,065 *If a customer purchases more than 500 units of a product in any year, they receive the rebate stated above on total purchases of that product for the full year. Required: c) Create some useful tables and visualisations of your data (25 marks) d) With reference to your analyses and other factors, provide advice to management (25 marks) e) Explain the importance of customer profitability analysis (5 marks) f) The company believes if the rebates are increased for River Runner and Sea Force to 20% and 15% respectively, that total sales volumes will increase by 10% from the customers presently entitled to the rebates. Do you recommend this move? Explain with calculations (10 marks) AquaSports sells two types of Kayak - the River Runner and the Sea Force. The following data has been provided: Cost per unit Markup Rebate* Customer-level information Water Adventures Sea Level Sports Lake Touring Bay Boating Serious Fishing River Runner $500 40% 15% Sales units by customer River Runner Sea Force 2,000 220 Sea Force $950 70% 10% 450 120 760 3,550 1,700 80 290 95 210 2,375 Order & dispatch $750 Number of orders 25 10 25 45 40 145 Exchange handling $650 Number of exchanges 30 45 70 75 230 450 Complimentary Customisations $90 a) Calculate profitability by customer showing detail line-by-line (25 marks) b) Create a customer ranking table (10 marks) Number of customisations 650 20 5 90 300 1,065 *If a customer purchases more than 500 units of a product in any year, they receive the rebate stated above on total purchases of that product for the full year. Required: c) Create some useful tables and visualisations of your data (25 marks) d) With reference to your analyses and other factors, provide advice to management (25 marks) e) Explain the importance of customer profitability analysis (5 marks) f) The company believes if the rebates are increased for River Runner and Sea Force to 20% and 15% respectively, that total sales volumes will increase by 10% from the customers presently entitled to the rebates. Do you recommend this move? Explain with calculations (10 marks)

Answer rating: 100% (QA)

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