Question
Matchless Fireplaces Etc., Incorporated sold Ima Kold a gas firepit that was on sale for $576. Jay Frost purchased a deluxe model for $1,140. Ima
Matchless Fireplaces Etc., Incorporated sold Ima Kold a gas firepit that was on sale for $576. Jay Frost purchased a deluxe model for $1,140. Ima returned a few months later to purchase a gas-log stove for her rec room for $1,037 and new logs for the gas fireplace in her living room for $350. Matchless earns a 33% margin on its firepits and gas stoves and a 40% margin on its gas logs. Assuming that Matchless does not expect any future sales to either Ms. Kold or Mr. Frost, what is the difference in profit earned between the two customers?
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