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Assume You Are a Sales Manager Responsible for Analyzing the Profitability

Question 44

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Assume you are a sales manager responsible for analyzing the profitability of the customers in your territory.You have gathered the following information on one of your customers:
Sales$300,000Cost of goods sold220,000Selling Cost: In-person sales calls50 @ $100 each5,000 Phone orders500 @ $10 each5,000 Shipping10,000 @ $2 each20,000 Express shipping100 @ $20 each2,000Administrative cost: Salaries Amount allocated to customer3,000 Supplies Amount allocated to customer500 Depreciation Amount allocated to customer250\begin{array} { l l l } &\text {Sales}&&\$300,000\\&\text {Cost of goods sold}&&220,000\\&\text{Selling Cost:}\\&\text {~In-person sales calls}&50\text{~@~}\$100\text{~each}& 5,000\\&\text {~Phone orders}&500\text{~@~}\$10\text{~each}&5,000\\&\mathrm{~Shipping}&10,000\text{~@~}\$2\text{~each}&\mathrm{20,000}\\&\text {~Express shipping}&100\text{~@~}\$20 \text{~each}&\mathrm{2,000}\\&\text{Administrative cost:}\\&\text {~Salaries}&\text {~Amount allocated to customer}&3,000\\&\text {~Supplies}&\text {~Amount allocated to customer}&500\\&\text {~Depreciation}&\text {~Amount allocated to customer}&250\\\end{array}
a.Calculate the customer net profit.
b.Calculate the profit margin.

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a. $300,000 - $220,0...

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