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A financial analyst for Simon Manufacturing prepared the following report: Customers Customer- Level Operating Income Customer Revenue A $5646.00 $26,250 B $4773.00 $30,000 C $3705.00

A financial analyst for Simon Manufacturing prepared the following report:

Customers Customer-

Level Operating Income Customer Revenue

A $5646.00 $26,250

B $4773.00 $30,000

C $3705.00 $15,000

D $1155.50 $7,300

E $984.80 $5,100

F $844.80 $4,400

G $336.60 $1,800

H $252.00 $4,500

I ($168.00) $2,400

J ($676.00) $2,600

Which of the following conclusions can be drawn from the report?

All profitable customers achieve customer level operating income in excess of 20%

Customer B has the second highest operating income margin

The cumulative customer-level operating income of the top eight customers represents about 105.0% of operating income

All customers provide positive contribution towards profitability

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