To begin, select a company of your choice. It may be the company you work for, a company that you have worked for in the past, or a company that you would like to work for, and, after briefly explaining the relationship between cost allocation and customer profitability, focus your response on the following five main factors that your chosen company could use to evaluate customer profitability:

Likelihood of customer retention

Potential for sales growth

Long-run customer profitability

Increases in overall demand from having well-known customers

The ability to learn from customers

Discuss how and why examining these variables could help your chosen company increase its overall profitability.