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Sheet 2 of 7 Question 1 - Metallia Pic Metallia Plc manufactures and supplies biscuit tins to customers that go on to fill them with
Sheet 2 of 7 Question 1 - Metallia Pic Metallia Plc manufactures and supplies biscuit tins to customers that go on to fill them with biscuits for supply to the retail sector. Metallia Plc has five customers and it suspects that some of its customers are not as profitable as they had once thought due to the increasing demands and late changes to orders that the customers are making. For example, an increasing number of requests are being made for changes to the original order in terms of the colour and shape of the tins ordered. Information relating to the five customers for the month of April 2020 is as follows: Customer Total Number of sales visits 35 7 25 33 20 120 3 2. 5 6 4 20 50 30 55 32 25 192 Number of standard deliveries Kilometres (Km) travelled per standard delivery Number of urgent deliveries Number of order changes (colour) Number of order changes (shape) 3 2 0 3 2 10 I 5 3 8 6 8 30 6 2 2 6 4 20 w 4* ENG 23:1 28/05/ Sheet 3 of 7 Activity costs Sales visits to customers Fuel and standard delivery costs Urgent order costs Order change costs (colour) Order change costs (shape) 23,400 9,480 7,500 9,000 7,500 Required: (a) Each of the five customers generated the same gross profit of 18,500 for Metallia Plc in April 2020. Using the information provided, prepare a customer profitability analysis for the five customers individually (9 marks) (b) Discuss the results of the customer profitability analysis and provide clear recommendations to the management of Metallia Plc on how they can use this analysis to increase the profits earned from their least profitable customer. (maximum word count 220 words) (11 marks) TOTAL 20 MARKS 39 words English (United Kingdom) Type here to search w
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