Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sheet 2 of 7 Question 1 - Metallia Pic Metallia Plc manufactures and supplies biscuit tins to customers that go on to fill them with

image text in transcribed

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Auditors Guide To Auditing Financial Statements In The UK

Authors: Steve Collings

1st Edition

1526527480, 978-1526527486

More Books

Students also viewed these Accounting questions