what is the net profit after dropping all the customers? Corley Communications performed a customer profitability analysis
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what is the net profit after dropping all the customers?
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Corley Communications performed a customer profitability analysis and obtained the following results for its bottom five customers: Customer Albert Brown Carter Dyson English (a) Customer Net Profit $1,260 Sales $525,000 $1,280,000 $1,640 $1,500,000 $1,500 $675.000 ($1,485) $460,000 ($4,140) Chris Corley, vice president for marketing, believes that if these five customers are dropped, the selling expenses required to serve them will be eliminated. Company revenues total $20,000,000; the current average customer profit margin is 8.0%, and net income is $1,600,000. Your answer is correct. Customer Profit Margin 0.24% 0.13% 0.10% (0.22%) (0.90%) Calculate the total customer net profit. Total customer net profit 1600000 Corley Communications performed a customer profitability analysis and obtained the following results for its bottom five customers: Customer Albert Brown Carter Dyson English (a) Customer Net Profit $1,260 Sales $525,000 $1,280,000 $1,640 $1,500,000 $1,500 $675.000 ($1,485) $460,000 ($4,140) Chris Corley, vice president for marketing, believes that if these five customers are dropped, the selling expenses required to serve them will be eliminated. Company revenues total $20,000,000; the current average customer profit margin is 8.0%, and net income is $1,600,000. Your answer is correct. Customer Profit Margin 0.24% 0.13% 0.10% (0.22%) (0.90%) Calculate the total customer net profit. Total customer net profit 1600000
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