Lynnwood Ltd.is reviewing two of its customers using ABC analysis.It has identified the following customer related activities and their rates:
The company has the following information regarding Enbright Ltd.and Jackson Inc.:
Sales for Enbright and Jackson are $280,000 and $148,000 respectively.The cost of goods sold on these sales are the same at 52%.
Required:
Using Customer ABC Analysis,analyze the relative profitability of Enbright and Jackson.
Definitions:
Conditioned Response
A conditioned response is an automatic reaction established by learning to an initially neutral stimulus after being repeatedly paired with an unconditioned stimulus that triggers an automatic response.
Unconditioned Stimulus
A stimulus that naturally and automatically triggers a response without prior learning or conditioning.
Drug Tolerance
The reduced effectiveness of a drug as a result of the repeated use of the drug.
Supporting Evidence
Information, data, or facts that underpin and reinforce a theory, hypothesis, or belief.
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