Sales and Customer Service Costs

Contribution Margin: The contribution margin dropped 3.8% and is an unfavorable variance because, while total sales dropped 3.1% the extra increase in other areas of variable spending caused the contribution margin to drop further than total sales dropped. Contribution margin is the amount of each unit

Today I’ll be comparing the Narration of “The Cask of Amontillado” and “The Black Cat” by Edgar Allen Poe. Edgar Allen Poe is the author of many great pieces of literature, using his narrators to explain situations that are going on in their life. The narrators of "The Cask of Amontillado" and "The Black Cat" both lead characters love for man’s inhumanity to man and animals through horrific murders.

JBI’s accountant Thomas suggested collecting information about the time and the amount of activity devoted to customer which might help the company

The company is profitable. However, management has become concerned about the profitability of the customers in its three customer-size categories—large, medium and small. Different customers demand different levels of support. Management has no basis for identifying customers that generate high profits or to drop those that do not generate enough revenues to cover the expenses to support them. Under the previous accounting system, it wasn't possible to determine the costs of supporting individual customers.

* Under cost plus system, rates are negotiated between the manufacturer and the customer, and the distributor manages those contracted rates (and adds % to the cost)

Customer profitability was a determinant used for segmenting and targeting, studies were done on customers’ likes, dislikes and types of products they would benefit from and models were developed to determine their propensity to buy.

the company’s margins have shrunk by 10% in the past year due to rising costs and growing competition.

A key measuring in comparing these companies’ stock values and assessing the functioning results is the operating margin figure. Whereas Best Buy’s operating margin of 0.02% is not as good as Wal-Mart’s 0.06% nor as bleak as Amazon’s 0.01%, it is by no means close to Apple’s 0.31% (Yahoo! Inc., 2013). The following table includes the operating margin

- Customers of the custom division, which develops products for a single customer. This division has a small amount of customers but a lot of products.

In order to improve its situation, the company plans to reduce store locations and sizes.8

Net sales: $1,000,000 cost of goods sold: $700,000 rent: $20,000 wages: $100,000 other operating expenses: $50,000 net sales – all operating expenses = 530,000

There was an increase in operating margin from 4.92 to 7.77 in 2016 and is mainly attributable to the decline in operating expenditures leading to a higher EBIT in 2016.

customers. Independently whether they are utilizing the equipment of the service for operating small, medium, or large business, as well as in cases the primary purpose of the solutions usage is to lower the utility costs.

The organization has more than 50 employees - our most profitable business customers "more than 50 employees" come in. The accounts of these companies are per hour basis and also to generate the highest revenue in the most consistent basis throughout the year to generate revenue. Many of these accounts, medical / health, dental, and housing industries are in. These customers also services and investment management services to pension plans such as assistance

-​Based on annual revenues of $140 million and unit sales of 500 to 600, the average unit sold has a value of $233,000 to $280,000.