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Corley Communications performed a customer profitability analysis and obtained the following results for its bottom five customers: Customer Sales Customer Net Profit Customer Profit Margin

Corley Communications performed a customer profitability analysis and obtained the following results for its bottom five customers:

Customer

Sales

Customer Net Profit

Customer Profit Margin

Albert $ 525,000 $9,450 1.80 %
Brown $ 1,200,000 $16,800 1.40 %
Carter $ 1,400,000 $5,600 0.40 %
Dyson $ 600,000 ($1,500 ) (0.25 %)
English $ 460,000 ($4,140 ) (0.90 %)

Chris Corley, vice president for marketing, believes that if these five customers are dropped, the selling expenses required to serve them will be eliminated. Company revenues total $18,000,000; the current average customer profit margin is 7.2%, and net income is $400,000.

a.) Calculate the total customer net profit.

Total customer profit margin $

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