The following customers purchase goods from the Abilleet Company on a monthly basis. In addition to the
Question:
The following customers purchase goods from the Abilleet Company on a monthly basis.
In addition to the above costs, Customer A requires 5 deliveries per month at a cost of \($1,000\) per delivery. Customers B and C each require 10 deliveries a month at a cost of \($800\) per delivery. Customer C normally requires more customer service support than Customers A and B. Customer C uses 40 hours of customer support, while A and B use 20 hours each. Customer support staff is paid \($30\) per hour. What is the customer profitability for Customers A, B, and C?
a. \($19,400\) for A, \($13,900\) for B, \($40,800\) for C
b. \($25,000\) for A, \($22,500\) for B, \($50,000\) for C
c. \($$44,400\) for A, \($36,400\) for B, \($90,800\) for C
d. \($23,400\) for A, \($21,100\) for B, \($48,000\) for C
Step by Step Answer:
Accounting For Managers Interpreting Accounting Information For Decision Making
ISBN: 9781118037966
1st Canadian Edition
Authors: Paul M. Collier, Sandy M. Kizan, Eckhard Schumann