Boxwood 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 Ecobright and Samson are $285,000 and $146,000 respectively.The cost of goods sold on these sales are the same at 48%.
Required:
Using Customer ABC Analysis,analyze the relative profitability of Ecobright and Samson.

Question

Boxwood 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 Ecobright and Samson are $285,000 and $146,000 respectively.The cost of goods sold on these sales are the same at 48%.
Required:
Using Customer ABC Analysis,analyze the relative profitability of Ecobright and Samson.

Quizplus · Accepted Answer

The Answer of Boxwood 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 Ecobright and Samson are $285,000 and $146,000 respectively.The cost of goods sold on these sales are the same at 48%.
Required:
Using Customer ABC Analysis,analyze the relative profitability of Ecobright and Samson.