ASK YOUR TEACHER TEACTICE ANO Evaluating customer profitability You on a credit card company you want to evaluate the process customer Automers de cand balance $1.000 $400 100 40 40 2 The only source of revenue from customers is the interest that you charge on credit card balances. You chargers and 10 Thus, if the credit card balance is $1,000 $10000 1500 Variable costs were for simplity from your Atem, they were and a) Computereve, and wofit margin for each customer customer Revenue $ Variable costs 3 Contribution margin $ $ Allocated costs - transactions $ $ Allocated costs customer supports $ profit margin Enter negative numbers with a minussi, le, a loss of $200 should be entered as 200, notas (200) or ($200 b) One of the customers is unprofitable. What can you do about this customer? (select all that apply) increase the interest rate you cannot do anything -- regudess of what you do, about 40-son of your customers will be unprofitable. That is just the cost of doing business limit the number of free customer support calls are the customer If you get rid of customer A, profit will: decrease by $5 in the long term increase by $5 in the long term O remain the same in the long term O decrease by $100 in the long term