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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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