Figure 11-2 Vibro Company sells a product used in many manufacturing processes.The sales activity involves three activity areas:
The following customer information is given:

- Refer to Figure 11-2.What is the profitability of customer BY?

Question

Figure 11-2 Vibro Company sells a product used in many manufacturing processes.The sales activity involves three activity areas:
 The following customer information is given:

- Refer to Figure 11-2.What is the profitability of customer BY?

Quizplus · Accepted Answer

The profitability of customer BY can be calculated by multiplying the revenue by the profit margin percentage. The revenue of customer BY is $14,500,000 (see Table 11-2), and the profit margin percentage is 26.4% (see Table 11-1), so the profitability of customer BY is:
$14,500,000 x 0.264 = $3,837,670
Therefore, the correct answer is C, $3,837,670.

Figure 11-2 Vibro Company Sells a Product Used in Many