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Safari Fle Edit View History Bookmarks Window Help STAT 2103 F2020-S www.02.2000 pool 3 per...

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Accounting

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Safari Fle Edit View History Bookmarks Window Help STAT 2103 F2020-S www.02.2000 pool 3 per hour total allocated costs for each product $ $ $ 3. 10.64/4 Points DETAILS PREVIOUS ANSWERS MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER Question Evaluating customer rofitability You own a credit card company. You want to evaluate the profitability of customers A and B. customer Acustomer credit card balance $500 $200 number of transactions 50 20 number of customer support calls 20 The only source of revenue from customers is the interest that you charge on credit card balances. You charge customers an interest rate of 40%. Thus, if the credit card balance is $1,000, revenues $1000'0.4-5400 Variable costs are zero for simplicity. From your ABC system, the activity rates are per transaction and $8 per customer support call a) Compute revenue, costs, and profit margin for each customer customer A customer B Revenue $ Variable costs $ $ Contribution margin $ $ Allocated costs - transactions Allocated costs - customer support $ Profit margin Enter negative numbers with a minus sign, le loss of $200 should be entered as 200, notas (200) or ($200)

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