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For each item below, identify whether the item applies to customer net profit or customer profit ...
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For each item below, identify whether the item applies to customer net profit or customer profit ...
For each item below, identify whether the item applies to customer net profit or customer profit margin by marking an "X" in the appropriate column.
Customer Net Profit
Customer
Profit Margin
Shows managers how many dollars a customer contributes to profit
Customer revenues - Cost of goods sold - Allocated selling expenses
Divides customer net profit by customer revenues
Allows comparison of customers regardless of the absolute sales volume
Result is expressed as a percentage
Textbook
Managerial Accounting
Edition:
4
th
Author:
Davis
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Customer Net Profit
Customer
Profit Margin
Shows managers how many dollars a customer contributes to profit
X
Customer revenues - Cost of goods sold - Allocated selling expenses
X
Divides customer net profit by customer revenues
X
Allows comparison of customers regardless of the absolute sales volume
X
Result is expressed as a percentage
X
1
Report
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Customer profit margin is calculated as customer net profit divided by customer gross profit.
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britt138
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Just got PERFECT on my quiz
DaiwalkerX
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Thank you, thank you, thank you!
vanna2014
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You make an excellent tutor!
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