Evaluate customer profitability and suggest ways

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Reference no: EM133970537

Question

Aqua Distribution buys bottled water at $12 per case and sells it to retail customers. Data pertaiing to four customers is as follows: Quinn Ralph Sutliffe Thorne Cases Sold 8,750 60,800 31,800 3,900 Actual price per case $ 14.16 $ 13.20 $ 13.92 $ 12.96 Number of orders 25 30 25 30 Customer visits 3 6 2 3 Deliveries 30 60 40 20 Miles per delivery 4 3 8 40 Expedited deliveries 0 0 0 1 The firm esitmates the following rates: Number of orders $ 100.00 per order Customer visits $ 80.00 per visit Delivery $ 2.00 per delivery mile traveled Product Handling $ 0.50 per case sold Expedited deliveries $ 300.00 per incident Evaluate customer profitability and suggest ways that Aqua might improve profitability.

Reference no: EM133970537

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