Swish Designs specialises in designing commercial office space in Auckland. The CEO, Ralph Polo has reviewed the financial results and has noticed that operating profits were below budget. He also has access to a customer profitability graph that shows the operating profit for each of the six main customers for August.

In his usual last minute way, the CO has just run into your office on his way to an executive meeting. He has asked you to prepare a few notes that he can use in that meeting to comment on customer profitability. You have only 10 minutes.
Required:
Write some brief notes for the CO that address the customer profitability graph. In your notes, explain possible actions that could be taken in relation to customers 5 and 6, and consider further information that is needed to undertake a more thorough analysis.

Transcribed Image Text:

Swish Designs Customer profitability graph for August $16 000 $16 000 14 000 - 12 000- $11 000 10 000- $9 000 $8 000 8 000- 6 000- 4 000- 2 000- Customer -2 000- -4 000 - -4 000 -6 000- -8 000 - -10 000 -$10 000 Operating profit 3.