Question
Using the table below, which is the most profitable customer segment? What is your overall assessment of this customer mix? Show your work. High Volume/Low
Using the table below, which is the most profitable customer segment? What is your overall assessment of this customer mix? Show your work.
|
| High Volume/Low Margin (HV/LM) | Low Volume/Low Margin (LV/LM) | Low Volume/High Margin (LV/HM) | High Volume/High Margin (HV/HM) |
| Annual Revenues | 15,000,000 | 900,000 | 800,000 | 2,000,000 |
| Variable Costs | 12,400,000 | 650,000 | 370,000 | 1,000,000 |
| Contribution Margin | 2,600,000 | 250,000 | 430,000 | 1,000,000 |
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Finance A Quantitative Introduction Volume 1
Authors: Piotr Staszkiewicz, Lucia Staszkiewicz
1st Edition
0128015845, 978-0128015841
