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all info is clear and available New Brunswick Ltd. is reviewing two of its customers using ABC analysis. It has identified the following customer related
all info is clear and available New Brunswick Ltd. is reviewing two of its customers using ABC analysis. It has identified the following customer related activities and their rates Activity Cost Driver Rate Sales visits of visits $ 450 Order processing of orders $ 125 Product handling of units $ 12 Special shipping #of shipments $ 500 The company has the following information regarding Enbright Ltd. and Jackson Inc.: dctivit Enbright Itd Jackson Inc of visits 9 6 of orders 18 24 Product handling 650 380 Special shipping 15 30 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% of revenues. Required: Using Customer ABC Analysis, analyze the relative profitability of Enbright and Jackson as well as their customer margin percentage. Indicate which customer is more profitable. Enbright Ltd Jackson Inc Customer hierarchy costs Total hierarchy costs Operating income (loss) Customer margin percentage The more profitable customer for the company is e 1 2. the same at 52% of revenues. Required: Using Customer ABC Analysis, anal margin percentage. Indicate which cu Enbright Cost of goods sold Gross margin Order processing Product handling Revenues Sales visits Special shipping Total hierarchy costs Operating incomo (1
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