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3)Marks (20) Lynnwood Ltd. is reviewing two of its customers using ABC analysis. It has identified the following customer related activities and their rates: Activity
3)Marks (20) Lynnwood Ltd. is reviewing two of its customers using ABC analysis. It has identified the following customer related activities and their rates: Activity Sales Order processing Product handling Special shipping Cost Driver # of visits # of orders # of units # of shipments Rate $450 $125 $12 $500 The company has the following information regarding Enbright Ltd. and Jackson Inc.: Enbright Ltd. 19 Activity # of visits # of orders Product handling Special shipping 18 Jackson Inc. 6 24 380 30 650 15 Sales for Enbright and Jackson are $280,000 and $148,000 respectively. The cost of goods sold on these sales are the same at 52%. Required: Using Customer ABC Analysis, analyze the relative profitability of Enbright and Jackson
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