Biology Forums - Study Force

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	​	$400,000
Cost of goods sold	​	320,000
Selling costs:	​	​
In-person sales calls	50 @ $100 each	5,000
Phone orders	500 @$20 each	10,000
Shipping	12,000 @ $2 each	24,000
Express shipping	100 @ $50 each	5,000
Administrative costs:	​	​
Office supplies	Amount allocated to customer	500
Office salaries	Amount allocated to customer	600

Required:

a.	Calculate the customer net profit.

b.	Calculate the customer profit margin.

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