Question

1. Calculate the contribution for each customer if the sales pattern for each is as follows:

Supermarket customer	Sales revenue**
1	$350,000
2	$160,000
3	$210,000
**Selling price is marked up 50% on direct cost of flowers.

Hints: conduct a customer profitability analysis based on the above customer related indirect costs.

Answer 1

Supermarket customer	Sales revenue**	Cost of Flower	Contribution margin
1	$350,000	233,333	116,667
2	$160,000	106,667	53,333
3	$210,000	140,000	70,000
		(Sales revenue/150*100)