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Question 1, E5-28 (similar to) Part 1 of 12 HW Score: 0%, 0 of 5 points O Points: 0 of 5 Saw Ramirez Wholesalers
Question 1, E5-28 (similar to) Part 1 of 12 HW Score: 0%, 0 of 5 points O Points: 0 of 5 Saw Ramirez Wholesalers operates at capacity and sells furniture items to four department-store chains (customers). M Ramirez commented, "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." Ramirez Wholesalers sends catalogs to corpo purchasing departments on a monthly basis. The customers are entitled to return unsold merchandise within a 6-mo period from the purchase date and receive a full purchase price refund. The following data were collected from last year's operations and Ramirez has calculated the following activity rates: (Click the icon to view the data.) (Click the icon to view the activity rates.) Customers pay the transportation costs. The cost of goods sold averages 80% of net sales. Requirement Determine the contribution to profit from each customer last year. Comment on your solution. Begin by completing the statement through gross margin for each chain. Then calculate the customer related costs and the contribution margin (loss) for each chain. (Round your answers to the nearest whole number. Use parentheses or a minus sign when entering a contribution loss.) Chain Gross sales Sales returns Net sales Cost of goods sold Gross margin Clear all Check answer Etext pages Calculator
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