CengageNOW 2IOnline x com/ilrn/takeAssignment/takeAssignmentMain.do?invoker- ass

Question

CengageNOW 2IOnline x com/ilrn/takeAssignment/takeAssignmentMain.do?invoker- assignments&takeAssignmentsessionLocator; assi Bl Vibrance Company sells a product used in many manufacturing processes. The sales activity involves three activity areas: Onder taking Sales visits Delivery vehices $100 per purchase order 550 per visit $1 per delivery mile The following customer information is given Units sold List price Actual sales price Number of purchase orders Number of sales vii Number of dalivary mas 000 80.000 60.000 $50 550 550 $45 30 550 $48 of sales 100 B0 Which customer is mosz profeabe?

Explanation / Answer

AX BY DZ Units sold 100000 80000 60000 Sales price 45 48 50 Number of orders 30 20 10 Number of sales visit 6 5 3 Number of delivery miles 100 80 60 Sales revenue 4500000 3840000 3000000 Less: Activity cost Order taking (@100 per order) 3000 2000 1000 Sales visit (@50 per visit) 300 250 150 Delivery vehicles (@1 per mile) 100 80 60 Customer margin 4496600 3837670 2998790 Q1. Answer is a. AX Q2. Answer is b. $3837,670

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