Oernien \&: Customers pey the transportation cokts. The coet of goods sold averages 15% of net sales. Reyvired: Determine the contribution to profit from each chain last vear. Comment an the solution. Thesiestexe thish awiters Rews Veritek. Wholesulers operates at capacity and selis furmiture items to four department-store chains (custumers). Mr. Venitek commetiled, "We apply ABC to determine product-line profitability. The same ideas apply to customer profitability, and we should find out our customer profitability as well." Veritek Wholesulers sends catalogues to comporate purchasing departments on a monthly basis. The etstomern are entitled to return unsold merchandive within a six-month period from the parchase date and receive a full purchase price refund. The data that was Customers pay the transportation costs. The cost of goods sold averages 75% of net sales. Required: Determine the contribution to profit from each chain last vear Commant on the ealution. The analysis indicates that customers' profitability (loss) contribution ___ 1 . This is due to the 2 . Immediate attention to 3 is required which is currently showing a 4 . This customer has a disproportionate number of _ 5 . Veritek should work with the management of 6 _ to find ways to reduce the 7 , while maintaining or increasing the 8