Two Calculations Can Be Made to Measure Customer Profitability: Customer

question 38

Essay

Two calculations can be made to measure customer profitability: customer net profit and customer profit margin.
a.What is the formula for customer net profit?
b.What is the formula for customer profit margin?

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Definitions:

Somatic

Relating to or affecting the body, distinct from the mind or psyche.

Autonomic Nervous System

A part of the peripheral nervous system that controls involuntary body functions, including heart rate, digestion, and respiratory rate.

Somatic

Relating to or affecting the body, especially as distinct from the mind or psyche.

Sympathetic

Pertaining to the sympathetic nervous system, which activates the body’s fight or flight response under stress.