Using ABC approach

i) Compute the customer margin for John Furniture

ii) Compute the customer margin for Kelly Store.

iii) Compute the customer margin for Steam town Mall.

Sample of Three Customers Information from 2020 John Furniture Kelly Store Steam Town Mall Sales $ 437,500 $ 131,250 $ 87,500 Cost of goods sold 250,000 75,000 50,000 Driver base Driver quantity Driver quantity Driver quantity # of sales calls 14 18 8 Negotiation hours 4 13 10 # of orders 19 62 3 # of new customers * 0 0 1 Pound miles 1,877,000 4,862,000 4,692,000 Support hours 7 29 31 * Only the third customer is a new customer