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Customer Costs Total Gold Silver Number of customers 110,000 40,000 70,000 Average customer representative salary $ 80,000 $ 80,000 Promotion costs $ 4,900,000 Average gross
Customer Costs | Total | Gold | Silver | ||||||
Number of customers | 110,000 | 40,000 | 70,000 | ||||||
Average customer representative salary | $ | 80,000 | $ | 80,000 | |||||
Promotion costs | $ | 4,900,000 | |||||||
Average gross margin per customer | $ | 710 | $ | 310 | |||||
Required:
a. Calculate the totals of the items below for both gold and silver customers, as well as the excess of gross margin over customer costs for each category. (Do not round intermediate calculations.)
Gold Silver
total gross margin
customer representative salaries and bonuses
promotion costs
excess of gross margin over customer cost
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