If an unprofitable customer cannot be turned into a profitable one,the company should consider
A)Lowering its selling price for the customer
B)Dropping the customer
C)Increasing the selling price until the customer become profitable
D)Not dropping the customer.

Question

Quizplus · Accepted Answer

When a customer cannot be turned into a profitable one, it is better to drop the customer. Continuing to serve an unprofitable customer will harm the company's profitability in the long term. The company can free up its resources to focus on more profitable customers.

If an Unprofitable Customer Cannot Be Turned into a Profitable