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Customer-Profitability Analysis for Consumer Banking ClientsRetail Customer CodeCustomer-Level ...
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Customer-Profitability Analysis for Consumer Banking ClientsRetail Customer CodeCustomer-Level ...
Customer-Profitability Analysis for Consumer Banking Clients
Retail Customer Code Customer-Level Operating Income Customer Revenue Customer-
Level Operating Income Divided by Revenue Cumulative Customer-Level Operating Income
(1) (2) (3) (4)
A $5,000,000 $25,000,000 ? $5,000,000
D 3,795,000 28,000,000 ? 7,500,000
C 2,250,000 15,000,000 ? 8,250,000
B 2,650,000 7,200,000 ? 9,100,000
13,695,000 75,200,000 ? 29,850,000
Required:
Compute the Customer-Level Operating Income.
Textbook
Managerial Accounting: Decision Making and Motivating Performance
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Authors:
Datar, Rajan
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Managerial Accounting:
Decision Making and Motivating Performance
University of Pittsburgh
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A: 20%; D: 13.56%; C: 15%; B: 36.81%
Explanation: Customer-Level Income:
Retail Customer A: Customer-level income: [($5,000,000 / $25,000,000)] = 20%
Retail Customer D: Customer-level income: [($3,795,000 / $28,000,000)] = 13.56%
Retail Customer C: Customer-level income: [($2,250,000 / $15,000,000)] = 15%
Retail Customer B: Customer-level income: [($2,650,000 / $7,200,000)] = 36.81%
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skully
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You make it look easy lol
Thanks
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Managerial Accounting:
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