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Question 2 (evaluating customer profitability) You own a credit card company. You want to evaluate the profitability of two representative customers, A and E customer

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Question 2 (evaluating customer profitability) You own a credit card company. You want to evaluate the profitability of two representative customers, A and E customer A customer B credit card balance $1,500 $600 number of transactions 150 60 number of customer support calls 60 Your revenues and costs for customers are as follows: * Revenues: The only source of revenue is the interest you charge on credit card balances. You charge custome * Costs: based on the estimates from your ABC system, each transaction costs you $0.25, and each customer Required: a) compute the revenue you get from each customer, and the costs of serving each customer. customer A customer B Revenue Cost of transactions Cost of customer support calls Enter a number b) compute the profit margin for each customer. If you get a negative number, enter it with a minus sign, i.e., enter negative $200 as -200 not ($200) profit margin for A - $ profit margin for B = $ Sumt Answer Practice Another Vers Question 2 (evaluating customer profitability) You own a credit card company. You want to evaluate the profitability of two representative customers, A and E customer A customer B credit card balance $1,500 $600 number of transactions 150 60 number of customer support calls 60 Your revenues and costs for customers are as follows: * Revenues: The only source of revenue is the interest you charge on credit card balances. You charge custome * Costs: based on the estimates from your ABC system, each transaction costs you $0.25, and each customer Required: a) compute the revenue you get from each customer, and the costs of serving each customer. customer A customer B Revenue Cost of transactions Cost of customer support calls Enter a number b) compute the profit margin for each customer. If you get a negative number, enter it with a minus sign, i.e., enter negative $200 as -200 not ($200) profit margin for A - $ profit margin for B = $ Sumt Answer Practice Another Vers

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