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Question Evaluating customer profitability You own a credit card company. You want to evaluate the profitability of customers and customer A customers credit card balance
Question Evaluating customer profitability You own a credit card company. You want to evaluate the profitability of customers and customer A customers credit card balance $500 $200 number of transactions 50 20 number of customer support cai 20 1 The only source of revenue from customers is the interest that you change credit card balances You charge customers arestute of 20%. Thus, the credit card 11,000, 1000+0.2200 Variable costs are vero forty from your ABC wstem, the activity rates are 80.5 per transaction and percutomersportal a) Compute revenue costs, and profit margin for each customer customer customer Revue 150 X 0 x Variable costs SO O Contribution margin $ 150 X 60 Allocated costs - transactions $ 375 X 15 Allocated costs customer supports 120 XS Profit margin $ 75 x 30 Enter negative numbers with a minusco, a loss of $200 sholde entered as-200, notas (200) or (200). X X X X
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