Customer Profitability Analysis Of Argos Ltd

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ACC 202 group assignment Customer profitability analysis of Argos Ltd 11201211 Narmaya Thapa 11500729 Bibek Nair Chhetri 11401132 Jewon Na Executive summary The following assignment mainly focuses on customers profitability based upon the sales made. The actual meaning of customer’s profitability is revenue earned by customers less the cost associated with them. Above calculation shows the company’s profitability in a certain time, through various customers. These types of calculation help company to compare their customers as by the profits and also helps to distinguish the needy ones. Customer who is profitable are the vital part of any organization, company should not lose such customers. Below given…show more content…
Table of contents 1. Introduction 2. Body 2-1. The customer operating profits of each firms based on actual number of orders written 2-2. The customer profitability analysis of each firms based on actual number of orders written 2-3. The customer operating profits of each firms based on actual orders received 2-4. The customer profitability analysis of each firms based on actual number of orders received 2-5. Comparisons of operating profit between various firms 2-6. Comparisons of operating profit between customer profitability ranking ratio 2-7. Requirements to improve the profitability of the firms 2-7-1. For more profitable firms 2-7-2. For less profitable firms 2-8. The 5 fundamental principles requirements to follow APES 110 code of ethics for accountants. 2-8-1. Breaching code of ethics by salespeople and reason 3. Conclusion 4. References 1. Introduction According to Philip Kotler,"a profitable customer is a person, household or a company that overtime, yields a revenue stream that exceeds by an acceptable amount the company 's cost stream of attracting, selling and servicing the customer." Company’s performance and level of profit is highly depend upon the customer’s profitability and keeping a profitable customer is a strategic managerial steps. Costs like sales commissions will increases the cost of company’s sales
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