The customer profit margin allows managers to compare customers based on
A)Absolute sales volume.
B)How much each dollar of revenue they generate goes to the bottom line,regardless of the customers' absolute sales volume.
C)How many dollars a customer contributes to the bottom line.
D)Average contribution margin.

Question

Quizplus · Accepted Answer

The customer profit margin measures how much each dollar of revenue generated by a customer goes to the bottom line. Therefore, it allows managers to compare customers based on how profitable they are, regardless of their absolute sales volume or contribution margin. The customer profit margin is a useful metric for identifying high-value customers and developing targeted marketing and retention strategies.

The Customer Profit Margin Allows Managers to Compare Customers Based