Managers are required to make many tough decisions over the course of a workday. One of the tough decisions a manager may be faced with is the decision to drop an existing customer from their portfolio. Chapter 7 of your textbook takes a deeper look at product and customer margins. Some companies refuse to drop customers (including non-profitable customers) in the hopes that these unprofitable customers will become profitable in the future. Other companies do not want unprofitable customers impacting their bottom-line year after year and choose to drop them.

In your opinion, when should unprofitable customers be dropped (if at all)? Provide personal examples, research, and textbook integration to help support your arguments.

REF:

Managerial Accounting

• Chapter 3 (omit Appendix)
• Chapter 4 (omit Appendix)

Heisinger, K. (2016, April 9). Managerial accounting 6.2: CVP analysis for multiple product and service companies [Video]. YouTube.https://www.youtube.com/watch?v=OaxOatxCIwQ

Please provide a brief and comprehensive response with IN-TEXT Citations. Thanks!