Rays Manufacturing makes electronic components. The company has two main customers. Information related to each customer is

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Ray’s Manufacturing makes electronic components. The company has two main customers. Information related to each customer is shown below:

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a. Prepare a customer profitability analysis.

b. Ray is currently using his full capacity to service Customers A and B. Ray has the option to use his full capacity to serve Customer B, who would to like to purchase more components. Should he consider this option? Why or why not?

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Accounting For Managers Interpreting Accounting Information For Decision Making

ISBN: 9781118037966

1st Canadian Edition

Authors: Paul M. Collier, Sandy M. Kizan, Eckhard Schumann

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