Lynnwood Ltd. is reviewing two of its customers using ABC analysis. It has identified the following customer related activities and their rates:
The company has the following information regarding Enbright Ltd. and Jackson Inc.:
Sales for Enbright and Jackson are $280,000 and $148,000 respectively. The gross margins on these sales are the same at 52%.
Required:
Using Customer ABC Analysis, analyze the relative profitability of Enbright and Jackson.

Question

Lynnwood Ltd. is reviewing two of its customers using ABC analysis. It has identified the following customer related activities and their rates:
  The company has the following information regarding Enbright Ltd. and Jackson Inc.:
  Sales for Enbright and Jackson are $280,000 and $148,000 respectively. The gross margins on these sales are the same at 52%.
Required:
Using Customer ABC Analysis, analyze the relative profitability of Enbright and Jackson.

Quizplus · Accepted Answer

The Answer of Lynnwood Ltd. is reviewing two of its customers using ABC analysis. It has identified the following customer related activities and their rates:
  The company has the following information regarding Enbright Ltd. and Jackson Inc.:
  Sales for Enbright and Jackson are $280,000 and $148,000 respectively. The gross margins on these sales are the same at 52%.
Required:
Using Customer ABC Analysis, analyze the relative profitability of Enbright and Jackson.