Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

why do total revenues $2650?? why total COGS is $2200? gross margin and where the number came up as $250??? please explain $2650,$2200, $450 ajd

why do total revenues $2650??
why total COGS is $2200?
gross margin and where the number came up as $250???
please explain $2650,$2200, $450 ajd $250 came up from!
thank you.
image text in transcribed
EN ZIMBTN CLV - AN EXAMPLE Let's look in our crystal ball and see what the future holds. As it turns out, Paul is a very knowledgeable cyclist. He does all his own maintenance and already has all the supplemental gear he needs (helmet, shoes, gloves, etc.) that he'll keep from his current bike gear. He also scans all the on-line vendors and uses that information to drive a hard bargain for his purchase. Finally he visited the store 6 times for test rides, and chatted quite a bit with the store's mechanics, resulting in lost service productivity. In the end, he purchased the bike for $2,400, and bought a few small items over the next 3 years, and became close friends with the mechanics! Total Revenues (3 years) Total COGS (3 years) Gross Margin Less Fixed Expenses -Net Profit (Paul) $2650 $2200 $450 $250 $200 EN ZIMBTN CLV - AN EXAMPLE Let's look in our crystal ball and see what the future holds. As it turns out, Paul is a very knowledgeable cyclist. He does all his own maintenance and already has all the supplemental gear he needs (helmet, shoes, gloves, etc.) that he'll keep from his current bike gear. He also scans all the on-line vendors and uses that information to drive a hard bargain for his purchase. Finally he visited the store 6 times for test rides, and chatted quite a bit with the store's mechanics, resulting in lost service productivity. In the end, he purchased the bike for $2,400, and bought a few small items over the next 3 years, and became close friends with the mechanics! Total Revenues (3 years) Total COGS (3 years) Gross Margin Less Fixed Expenses -Net Profit (Paul) $2650 $2200 $450 $250 $200

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

Corporate Environmental Reporting The Western Approach To Nature

Authors: Leanne J Morrison

1st Edition

0367785455, 9780367785451

More Books

Students also viewed these Accounting questions