Rank Alanson, Boyne, and Conway from most profitable to least profitable according to the initial system?s estimate of the contribution of each customer to Jamestown?s bottom-line profitability. What are Jamestown?s options regarding the treatment of these three customers? Based on this initial customer profitability analysis, what action do you recommend Jamestown take with each of these three customers

Student2012WPI A. Rank Alanson, Boyne, and Conway from most profitable to least profitable according to the initial system's estimate of the contribution of each customer to Jamestown's bottomline profitability. What are Jamestown's options regarding the treatment of these three customers? Based on this initial customer profitability analysis, what action do you recommend Jamestown take with each of these three customers? B. What, if any, issues/challenges do you see with the customer profitability measurements from the initial customer profitability system, provided in Exhibit 2? What assumption(s) is the customer profitability system making implicitly, with respect to the way in which each customer consumes Jamestown's resources? C. Are the accounting customer profitability measures provided by the internal customer profitability system positive (i.e., provide supportive cost information that leads Jamestown managers to make better decisions about corporate profitability), negative (i.e. provide cost information that leads Jamestown managers to make worse decisions about corporate profitability) or neutral (i.e., provide cost information that does not affect Jamestown managers' decisions about corporate profitability)? D. Now consider the alternate customer profitability system that Jamestown is contemplating. How does the alternate system differ (e.g., underlying assumptions, categorization and treatment of various costs) from the initial system? E. Use the data provided from the alternate customer profitability system to calculate customer service charges for W&S activities for Alanson, Boyne, and Conway. Next, estimate the contribution to Jamestown's bottom-line profitability made by each of these three customers according to this new alternate customer profitability system