P6-33a&b - $2,213.10 $1,254.00 $230.60 $502.50...

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P6.36 a. Customer Customer Customer Customer Customer #1 #2 #3 #4 #5 ($ 000) Sales $17,000 $12,000 $3,000 $4,000 $3,000 Cost of goods -13,600 -9,600 -2,400 -3,200 -2,400 Gross profit 3,400 2,400 600 800 600 Less expenses: Sales commissions (@ 5%) -850.0 -600.0 -150.0 -200.0 -150.0 Sales visits (@1,200) -127.2 -156.0 -62.4 -40.8 -19.2 Product adjustments (@ 1,500) -34.5 -54.0 -15.0 -9.0 -7.5 Phone and other remote contacts (@ $150 -33.0 -53.1 -27.0 -20.7 -15.6 Promotion and entertainment (@ $1,500) -123.0 99.0 111.0 -27.0 -15.0 Corporate jet expense -19 .2 -28 .8 -4 .0 0 .0 -4 .8 Customer Profitability $2,213 .1 $1,254 .0 $ 230 .6 $502 .5 $387 .9 Net Customer Return on Sales 13 .02 % 10 .45 % 7.69 % 12 .56 % 12.93 %
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P6-36 (cont.) b. Customer Customer Customer Customer Customer #1 #2 #3 #4 #5 ($ 000)
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Unformatted text preview: $2,213.10 $1,254.00 $230.60 $502.50 $387.90 Less G&A expense*: 17/39 [3,000 (9.6 + 28.8 + 4.0 + 4.8)]-1,287.11 12/39 [3,000 (9.6 + 28.8 + 4.0 + 4.8)-908.55 3/39 [3,000 (9.6 + 28.8 + 4.0 + 4.8) -227.14 4/39 [3,000 (9.6 + 28.8 + 4.0 + 4.8)-302.85 3/39 [3,000 (9.6 + 28.8 + 4.0 + 4.8) _______ _____ ______ _____-227 .14 Net Customer Profitability $ 925 .98 $345 .45 $ 3 .46 $199 .65 $ 160 .76 Net Customer Return on Sales 5 .45 % 2 .88 % 0.01 % 4 .99 % 5.36 % *Corporate jet cost previously assigned to the customers is subtracted from total G&A overhead in this calculation....
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This note was uploaded on 05/08/2011 for the course 193431918X 711 taught by Professor Braham during the Spring '11 term at Missouri (Mizzou).

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P6-33a&b - $2,213.10 $1,254.00 $230.60 $502.50...

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