If products are being sold to customers A and B above costs and the company is earning a profit, then customers A and B must both be profitable.

Question

Quizplus · Accepted Answer

Profitability of individual customers depends on whether the gross profit from sales to those customers exceeds the customer-specific costs of serving those customers. Some customers are simply more costly than other customers and some may be even unprofitable.

If Products Are Being Sold to Customers a and B