Question: Total Customer A Customer B Direct Materials and Direct Labor cost of producing vacuums 3 1 5 , 0 0 0 Factory rent and supervisor

Total Customer A Customer B Direct Materials and Direct Labor cost of producing vacuums 315,000 Factory rent and supervisor salaries 150,000 Hint: these are fixed Total Costs465,000 Vacuums produced and sold 21,00020,0001,000 Price paid for each vacuum by customer $20$50 Average Cost per Vacuum ? Revenue from customer(s)??? Total Cost of customer(s)??? Profit from customer(s)??? Note: Assume all vacuums that get produced end up getting sold Using the table move, should we drop Customer A if we cannot terminate the supervisors and cannot stop factory paying rent? 1 Hint: calculate the total profit if 1) we drop A and 2) keep A as a customer. Compare the two Should we drop Customer A if we cannot terminate the supervisors and cannot stop paying factory rent when Customer A only pays $16 per vacuum? 1 Should we drop Customer A if we cannot terminate the supervisors and cannot stop paying factory rent when Customer A only pays $10 per vacuum? 1 Assuming we sell only 1,000 vacuums to B at $50 per unit, how many vacuums should we sell to A at $20 in order to earn a profit of $50,000?1

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