BU111 Lecture Notes - Lecture 9: Contribution Margin, Earnings Before Interest And Taxes
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,680/1,560 productive hours/operator = . 00 per hour (b) (i) 0. 1 + (10 0. 02) = 0. 3 hours. Students can refer to the in practice box on textbook page 224. The following table shows the customer profits sorted from largest to smallest, the cumulative profit after adding each customer, and the cumulative profit percentages that were used to plot the whale curve shown below. In addition, the first row (rank 0) was included below so that the graph begins at 0. The most profitable 20% of the customers (i. e. , the most profitable 5 out of 25 customers) generated 139% of the profit, as shown in the table in part (a). The least profitable 20% of the customers (i. e. , the least profitable 5 customers) lost (202% 100%) = 102% of the profit. If saunders reduced its sales discounts so that net revenues increased by 10%, the net revenue would increase to ,000 and operating profit would increase by (,000 ,000)/
