Menu
support@graduatecourseshelp.com
+1(805) 568 7317

cu s tomer p r o 64257 tability servi c e c ompan y overloon bv is a repair service 737070

Cu s tomer p r ofitability, servi c e c ompan y .

Overloon BV is a repair service company specialising in the rapid repair of photocopying machines. Each of its 10 clients pays a fixed monthly service fee (based on the type of pho tocopying machines owned by that client and the number of employees at that site). Overloon keeps records of the time technicians spend at each client as well as the cost of the equipment used to repair each photocopying machine. Overloon recently decided to calculate the profitability of each customer. The following data (in thousands) pertain to May 2008:

Customer Customer revenues costs

Hytop BV

€260

€182

Koninklijk Nederlands Meteorologisch Instituut

180

184

Hoogovens Scrap Processing

163

178

Borgh Pensioen Consultancy

322

225

Edah Supermarkten

235

308

Hogeschool Eindhoven

80

74

Koninklijk Instituut voor de Marine

174

100

Eindhovens Dagblad

76

108

Randmeer College

137

110

NRC Handelsblad

373

231

Required

1 Calculate the operating profit of each customer. Prepare exhibits for Overloon that are similar to Exhibits 12.11 and 12.12. Comment on the results.

2 What options regarding individual customers should Overloon consider in light of your customer profitability analysis in requirement 1?

3 What problems might Overloon encounter in accurately estimating the operating cost of each customer?

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now