SkiBlu, Ltd., divides its customers into Gold customers and Silver customers. The company has one full-time...

  

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SkiBlu, Ltd., divides its customers into Gold customers and Silver customers. The company has one full-time customer representative per 1,000 Gold customers and one full-time customer representative per 10,000 Silver customers. Customer representatives receive salaries plus bonuses of 10 percent of customer gross margin. SkiBlu spends 90 percent of its promotion costs on Gold customers to encourage their loyalty. Customer Costs Number of customers Average customer representative salary Promotion costs Average gross margin per customer Total 49,000 $4,800,000 Gold 39,000 $ 79,000 $ 705 Silver 10,000 $ 79,000 $ 300 Required: a. Calculate the totals of the items below for both gold and silver customers, as well as the excess of gross margin over customer costs for each category. b. Which customers are more profitable? Required A Required B Calculate the totals of the items below for both gold and silver customers, as well as the excess of gross margin over customer costs for each category. (Do not round intermediate calculations.) Gold Total gross margin Customer representative salaries & bonuses Promotion costs Excess of gross margin over customer cost Silver Required A Required B Which customers are more profitable? OGold Silver SkiBlu, Ltd., divides its customers into Gold customers and Silver customers. The company has one full-time customer representative per 1,000 Gold customers and one full-time customer representative per 10,000 Silver customers. Customer representatives receive salaries plus bonuses of 10 percent of customer gross margin. SkiBlu spends 90 percent of its promotion costs on Gold customers to encourage their loyalty. Customer Costs Number of customers Average customer representative salary Promotion costs Average gross margin per customer Total 49,000 $4,800,000 Gold 39,000 $ 79,000 $ 705 Silver 10,000 $ 79,000 $ 300 Required: a. Calculate the totals of the items below for both gold and silver customers, as well as the excess of gross margin over customer costs for each category. b. Which customers are more profitable? Required A Required B Calculate the totals of the items below for both gold and silver customers, as well as the excess of gross margin over customer costs for each category. (Do not round intermediate calculations.) Gold Total gross margin Customer representative salaries & bonuses Promotion costs Excess of gross margin over customer cost Silver Required A Required B Which customers are more profitable? OGold Silver

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