Brindle Corporation is considering an initiative to assess customer profitability. The companys CFO, John Bradley, stated his
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The position of the company’s marketing vice president, Jerry Brown, is quite different” This $1,000,000 investment is a waste of money. We’ll go through the exercise and find out that some customers are more profitable than others, but we’re not going to change a thing. Even the less profitable customers make a contribution to covering overhead, and we’re not going to drop a single one.”
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Write one or two paragraphs elaborating on the arguments of the CFO and the marketing vice president. In your discussion, consider the fact that the bonus compensation of the marketing VP is based on sales volume. Could this be influencing Jerry’s position?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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