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A tree farm supplies shrubs to two customers. Each shrub has a selling price of R60. It costs R25 to grow a shrub and get
A tree farm supplies shrubs to two customers. Each shrub has a selling price of R60. It costs R25 to grow a shrub and get it to the point of sale. Additional costs incurred by the farm are R100 per order fulfilled and delivery costs of R500 per order delivered Details of two of the farm's customers (B and C) for the previous period are as follow Shrubs purchased Discount allowed Orders fulfilled Deliveries made Customer B 960 15% 8 (each for 120 shrubs) 8 Customer C 650 20% 10 (each for less than 100 shrubs) 0 Customers are given a 15% discount on orders for 100 shrubs or more Customer C is give a 20% discount for collecting the shrubs using its own transport REQUIRED: Evaluate the two customers. Your answer should include customer profitability statements and appropriate measures [10]
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