Seth supplies shoes to Natangwe and Shilongo. Each pair of shoes has a list price of N$50 and costs Seth N$25. As Shilongo buys in bulk he receives a 10% discount for every

order for 100 pairs of shoes or more. Natangwe receives a 15% discount irrespective of order size, because that company

collects the shoes, thereby saving Seth any

distribution costs. The cost of administering each order is N$50 and the distribution cost is N$1000 per order. Natangwe makes 10 orders in the year, totalling 420 pairs of shoes, and Shilongo places 5 orders for 100 pairs.

Marks

REQUIRED: 3.4. Using customer profitability analysis, calculate the most profitable Customer for Seth.