If a customer cannot be returned to profitability and the customer is dropped,
A)The company's overall profit will increase.
B)The company's revenue will decrease in the short-run.
C)The managers will have more resources to serve profitable customers
D)The company's over profit will increase,the company's revenue will decrease in the short-run,and the managers will have more resources to serve profitable customers.

Question

Quizplus · Accepted Answer

Dropping an unprofitable customer can lead to an increase in overall profit as resources are reallocated to more profitable customers, although it may result in a short-term decrease in revenue.

If a Customer Cannot Be Returned to Profitability and the Customer