Customer profit margin divides customer net profit by customer revenues to obtain the profit percentage the customer generates for the company.

Question

Quizplus · Accepted Answer

This statement is true. Customer profit margin is a metric that measures the profitability of a particular customer for a company, and it is calculated by dividing the customer's net profit by their revenues. This results in a percentage that represents the profit generated by the customer for the company.

Customer Profit Margin Divides Customer Net Profit by Customer Revenues