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	​	$300,000
Cost of goods sold	​	220,000
Selling costs:	​	​
In-person sales calls	50 @ $100 each	5,000
Phone orders	500 @$10 each	5,000
Shipping	10,000 @ $2 each	20,000
Express shipping	100 @ $20 each	2,000
Administrative costs:	​	​
Salaries	Amount allocated to customer	3,000
Supplies	Amount allocated to customer	500
Depreciation	Amount allocated to customer	250

Required:

a.	Calculate the customer net profit.

b.	Calculate the profit margin.

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