Question
Handy-Andy Services is a repair-service company specializing in small household jobs. Each client pays a fixed monthly service fee based on the number of rooms
Handy-Andy Services is a repair-service company specializing in small household jobs. Each client pays a fixed monthly service fee based on the number of rooms in the house. Records are kept on the time and material costs used for each repair. The following profitability data apply to five customers:
Customer Revenues Customer Costs
Marv Burnett $300 $225
J Jack 200 105
Roger Jon 80 85
Paul Sarras 75 65
Becky Stiphac 275 220
Required:
a. Which customer do they make the most net income from on a dollar basis?
b. Which customer do they make the most net income from as a percentage of Customer Revenues?
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