Question: I need answer W Company As largest customer, Mr. Large, contributes about $3,000 a month in M ' revenue, while the next largest customer, Mr.

I need answer

I need answer W Company As largest customer, Mr. Large, contributes about

W Company As largest customer, Mr. Large, contributes about $3,000 a month in M ' revenue, while the next largest customer, Mr. Middle is around $1,800 a month in revenue. Given this information, we can say that Mr. Large is more important to retain and more profitable as compared to Mr. Middle. Why is this statement not necessarily correct? 0 Mr. Large is certainly more important to retain but probably not as profitable as Mr. Middle. ' O The customers that have the highest revenue aren't necessarily the customers that are most profitable because the large customers typically have the highest discounts and are the costliest to service. 0 Although Mr. Large spends the most with Company A, it is important to understand the size of the fixed costs to set up Mr. Large as a customer and how often he calls into customer service to get support to truly evaluate his profitability

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