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Hanover Racks (HR) is a wholesaler that imports wine racks from SE Asia and exports them to German speaking countries. HR has no inventory as
Hanover Racks (HR) is a wholesaler that imports wine racks from SE Asia and exports them to German speaking countries. HR has no inventory as it orders from manufacturers only after receiving an order from a customer. Below is a customer profitability report for four HR customers: Klaus Hans Leonie Mila Revenues $10,000 $21,000 $7,000 $7,000 Cost of goods sold $6,000 $16,000 $6,000 $5,500 Allocated customer support costs $5,500 $3,200 $1,100 $900 Customer profitability ($1,500) $1,800 ($100) $600 A special study was done on HR's customer support costs, which determined that HR's customer support costs would decrease by $1,300 for each customer it no longer supplied. Assuming customer behaviour will remain similar, which action will result in the highest profit for HR? a. Remove Klaus b. Remove Leonie c. Remove Mila d. Remove Klaus and Leonie e. Remove Klaus and Leonie and Mila
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