If an Unprofitable Customer $\textbf{ cannot }$

question 42

Multiple Choice

If an unprofitable customer $\textbf{ cannot }$ be turned into a profitable one,the company should consider

• A)Lowering its selling price for the customer
• B)Dropping the customer
• C)Increasing the selling price until the customer become profitable
• D)None of these ans choices are correct

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Definitions:

Unincorporated Contractual Association

A group of individuals engaged in a business enterprise without forming a legal corporation.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence but not full control or majority ownership, typically involving the recognition of income proportional to its share of the investee's profits.

One-Line Method

A consolidation method where an investor reports its share of a subsidiary’s or associate’s single line item, such as net income, in its own financial statements.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence but does not have full control.