Question
SkiBlu, Ltd, divides its customers into Gold customers and Silver customers. The company has one full-time customer representative per 1,000 Gold customers and one
SkiBlu, Ltd, divides its customers into Gold customers and Silver customers. The company has one full-time customer representative per 1,000 Gold customers and one full-time customer representative per 10,000 Silver customers. Customer representatives receive salaries plus bonuses of 10 percent of customer gross margin. SkiBlu spends 80 percent of its promotion costs on Gold customers to encourage their loyalty. Customer Costs Total Gold Number of customers Average customer representative salary Promotion costs $4,100,000 68,000 48,000 $80,000 $88,000 $ 750 $ 390 Silver 20,000 nces Average gross margin per customer Required: a. Calculate the totals of the items below for both gold and silver customers, as well as the excess of gross margin over customer costs for each category. b. Which customers are more profitable? Complete this question by entering your answers in the tabs below. Required A Required B Calculate the totals of the items below for both gold and silver customers, as well as the excess of gross margin over customer costs for each category. (Do not round intermediate calculations.) Total gross margin Customer representative salaries & bonuses Promotion costs Excess of gross margin over customer cost Gold Silver Required A Required B >
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