Maurice Tutor

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About Maurice Tutor

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Teaching Since: May 2017
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Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 01 Nov 2017 My Price 7.00

SkiBlu, Ltd.

Customer Profitability

SkiBlu, Ltd., divides its customers into Gold customers and Silver customers. The company has one full-time customer representative per 1,000 Gold customers and one full-time customer representative per 10,000 Silver customers. Customer representatives receive salaries plus bonuses of 10 percent of customer gross margin. SkiBlu spends 90 percent of its promotion costs on Gold customers to encourage their loyalty.

Customer Costs

Total

Gold

Silver

Number of customers

100,000

30,000

70,000

Average customer representative salary

 

$35,000

$35,000

Promotion costs

$4,000,000

 

 

Average gross margin per customer

 

$ 220

$ 70

Required

a. What is the excess of gross margin over customer costs for each category of customer?

b. Write a short memo that evaluates customer profitability.

Answers

Maurice Tutor
(5)
Status NEW Posted 01 Nov 2017 06:11 PM My Price 7.00

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