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Corley Communications performed a customer profitability analysis and obtained the following results for its bottom five customers: Customer Customer Profit Margin 0.24% Albert Brown Customer

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Corley Communications performed a customer profitability analysis and obtained the following results for its bottom five customers: Customer Customer Profit Margin 0.24% Albert Brown Customer Sales Net Profit $525.000 $1,260 $1,220,000 $1,586 $1,500,000 $1.500 $650.000 ($1.430) $460,000 ($4.140) 0.13% Carter 0.10% (0.2296) Dyson English (0.909) 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 $20,000,000; the current average customer profit margin is 8.00%, and net income is $1,600.000 (a) Your answer is correct Calculate the total customer net profit. Total customer net profit $ 1600000 (b) Your answer is correct. Calculate average customer profit margin after dropping all five customers. (Round answer to 1 decimal places, eg. 15.2%) Average customer profit margin 10.3 % eTextbook and Media Attempts: unlimited (c) * Your answer is incorrect. Calculate net profit after dropping all five customers. Net profit $ 1601380

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