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You own a credit card company. You want to evaluate the profitability of two representative customers, A and B. The numbers for customers A and

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You own a credit card company. You want to evaluate the profitability of two representative customers, A and B. The numbers for customers A and B are as fo customer A customer credit card balance $1,000 $400 number of transactions 100 number of customer support calls 40 Your revenues and costs for customers are as follows: * Revenues: The only source of revenue is the interest you charge on credit card balances. You charge customers an interest rate of 40% (40% APR). So, ift $100, your revenue is $100"0.4=$40. - Costs: based on the estimates from your ABC system, each transaction costs you $1, and each customer support call costs you $8. Ignore all other costs. Required: a) compute the revenue you get from each customer, and the costs of serving each customer customer A customer B Revenue Cost of transactions Cost of customer support calls b) compute the profit margin for each customer. If you get a negative number, enter it with a minus sign, e., enter negative $200 as 200 not (5200) profit margin for A = $ profit margin for B = $

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