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Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
النسخة 2الرقم المعياري الدولي: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
النسخة 2الرقم المعياري الدولي: 978-0077274993 تمرين 15
Customer Profitability
Lighthouse Company divides its customers into Premium customers and Standard customers. The company has one full-time customer representative per 100 Premium customers and one full-time customer representative per 1,000 Standard customers. Customer representatives receive salaries plus bonuses of 1 percent of customer gross margin. Lighthouse spends 80 percent of its promotion costs on Premium customers to encourage their loyalty.
Required
a. What is the excess of gross margin over customer costs for each category of customer
b. Write a short memo that evaluates customer profitability.
Lighthouse Company divides its customers into Premium customers and Standard customers. The company has one full-time customer representative per 100 Premium customers and one full-time customer representative per 1,000 Standard customers. Customer representatives receive salaries plus bonuses of 1 percent of customer gross margin. Lighthouse spends 80 percent of its promotion costs on Premium customers to encourage their loyalty.
Required
a. What is the excess of gross margin over customer costs for each category of customer
b. Write a short memo that evaluates customer profitability.
التوضيح
موثّق
موثّق
Cost accounting system
This is a system...
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
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