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  3. skiblu, ltd., divides its customers into gold cust

SkiBlu, Ltd., divides its customers into Gold customers and Silver customers. The company has one...

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Accounting

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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 repre. sentative per 10,000 Silver customers. Customer representatives receive salaries plus bonuses of (LO 10-4) 10-58. Customer Profitability Gold 10 percent of customer gross margin. SkiBlu spends 90 percent of its promotion costs ons customers to encourage their loyalty. Total Silver 100,000 Gold 30,000 $70,000 70,000 $70,000 Customer Costs Number of customers... Average customer representative salary Promotion costs....... Average gross margin per customer. $4,000,000 $ 660 $ 210 Required What is the excess of gross margin over customer costs for each category of customer? b. Write a short memo that evaluates customer profitability. a

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