Heimlich would like to increase its profits but is has capacity constraints. Heimlich wants to cull out the poorer performing customers to provide additional capacity so they can increase their sales to the better performing customers. Assume:

• $4.36 unit price
• $2.27 unit variable cost
• 48% corporate tax rate
• $36 cost to fill an order (regardless of how many units are in that order)

Customer 1 Has:

• The customer placed 127 orders
• The customer ordered 447,100 total units
• The estimated internal cost for the customer each time they order is $56 (Not sure if this is relevant data or not for this question)
• Inventory Carrying Cost of 40% (Not Sure If This is Relevant Data for this question)

Customer 2 Has:

• The customer placed 300 orders
• The customer ordered 449,500 total units
• The estimated internal cost for the customer each time they order is $50 (Not sure if this is relevant data or not for this question)
• Inventory Carrying Cost of 42% (Not Sure If This is Relevant Data for this question)

Which Customer Should they cull? (Show the math)