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Home Q & A Board Other Fields Homework Help Business Accounting
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sheila sheila
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A month ago
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 calls50 @ $100 each5,000
  Phone orders500 @$10 each5,000
  Shipping10,000 @ $2 each20,000
  Express shipping100 @ $20 each2,000
Administrative costs:​​
  SalariesAmount allocated to customer3,000
  SuppliesAmount allocated to customer500
  DepreciationAmount allocated to customer250
Required:

a.Calculate the customer net profit.
b.Calculate the profit margin.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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sillysquirrelsillysquirrel
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A month ago
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More solutions for this book are available here
a.$300,000 - $220,000 - $5,000 - $5,000 - $20,000 - $2,000 = $48,000
b.$48,000 ÷ $300,000 = 16%
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