The measure that divides customer net profit by customer revenues is referred to as
A)Customer revenue margin.
B)Times revenue earned per customer.
C)Customer profit margin.
D)Customer net profit.

Question

Quizplus · Accepted Answer

The measure described is specifically asking for a calculation of net profit divided by customer revenues, which is known as the customer profit margin. Option A is incorrect because it does not take into account the profit made from the customer. Option B is incorrect because it does not include the net profit of the customer. Option D is incorrect because it only gives one component of the calculation and does not consider the revenue aspect.

The Measure That Divides Customer Net Profit by Customer Revenues