Answer:
Customer profit statement in Large to small order:
| Customer | #5 | 950000 |
| #4 | 909000 | |
| #6 | 872000 | |
| #10 | 631000 | |
| #2 | 624000 | |
| #7 | 598000 | |
| #8 | 322000 | |
| #1 | 306000 | |
| #9 | -105000 | |
| #3 | -257000 | |
| Total | 4850000 |
(i) Calculate the total profits from the 3 most
profitable customers:-
Answer 950,000+909,000+872,000 = 2,731,000
(ii) Calculate the total profits for the 5 most
profitable customers:-
Answer 950,000+909,000+872,000+631,000+624,000 = 3,986,000
(iii) Calculate the total profits for the 8 most profitable customers:-Answer 950,000+909,000+872,000+631,000+624,000+598,000+322,000+306,000 = 5,212,000
(iv) Calculate the total profits for the 9 most
profitable customers
Answer
950,000+909,000+872,000+631,000+624,000+598,000+322,000+306,000-105,000
= 5,107,000
Chart:
E19-26. Customer Profitability Analysis Leahy Inc. has 10 customers that account for all of its $4,200,000...
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