What are your recommendations for midtown meats

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Reference no: EM131914589

Problem

Midtown Meats has gathered the following information to assist them in evaluating two of their customers; Downtown Diner and Eddy's Eats.

				Customer Data
Cost Description	Annual Cost	Cost Measure	Annual Quantity	Downtown Diner	Eddy's Eats
Internet Orders	$ 1,000,000	Order	500,000	500	0
Phone Orders	$ 2,000,000	Order	400,000	0	1,000
Inventory Picking	$ 3,000,000	Product	1,000,000	800	1,800
Packaging of orders	$ 1,500,000	Item	50,000,000	1,000,000	1,000,000
Returns	$ 3,000,000	Return	50,000	2	200

a. Calculate the profitability, or lack thereof, of each
b. What are your recommendations for Midtown Meats?

Reference no: EM131914589

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