Liza Davis and the Bargain Hunting Customer HBS Case Need Help with question 4

What is the value of the discount customer? Within Liza Davis' current cost allocation structure, the 60% off customer is not profitable (Exhibit 6). Analyze how costs are allocated to the 60% off customer and ways in which Exhibit 6 could be adjusted to more accurately reflect the value of the Bargain customer. How can we adjust the numbers to capture the 1. mer? For this questi not just qualitatively, but also quantitatively how to adjust the numbers. 2. What is the dollar cost of a return using TDABC? Please include both the cost of a sales clerk's time as well as the cost of the merchandise. Given this information, how would you amend the return policy? 3. What should Liza Davis' overall strategy be for discount customers? Should Liza Davis change the loyalty program to incentivize or dis- incentivize discount purchases? 4