Customers
Business, 27.05.2020 23:06 SamaHafiz8984
A financial analyst for Simon Manufacturing prepared the following report:
Customers
Customerminus−
Level Operating Income
Customer Revenue
A
$ 5 comma 563.00$5,563.00
$26,250
B
$ 4 comma 474.00$4,474.00
$30,000
C
$ 3 comma 851.00$3,851.00
$15,000
D
$ 1 comma 049.50$1,049.50
$7,300
E
$984.80
$5,100
F
$844.80
$4,400
G
$336.60
$1,800
H
$252.00
$4,500
I
($168.00)
$2,400
J
($676.00)
$2,600
Which of the following conclusions can be drawn from thereport?
A. The cumulative
customerminus−level
operating income of the top eight customers represents about
105.1105.1%
of operating income
B.
Customer B has the second highest operating income margin
C.
All profitable customers achieve customer level operating income in excess of 20%
D.
All customers provide positive contribution towards profitability
Answers: 3
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A financial analyst for Simon Manufacturing prepared the following report:
Customers
Customers
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