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The Financial Director (FD) of your company has heard it said that 80% of profits come from 20% of customers. The FD has accused the sales team of wasting time on serving customers who are not valuable to the business.
The FD has instructed you to take a random sample of 100 customers and to calculate the total contribution the company earned from each customer in the past year. The FD intends to instruct the sales team to stop selling to the bottom 25% of these customers in order to improve profitability.
Which THREE of the following factors should the FD consider when he interprets your results?
A. It is ethically wrong to stop supplying unprofitable customers.
B. It will ignore many customer attributable costs that differ widely from customer to customer.
C. This doesn't take into account the value of the customer in referring new customers to us.
D. This would not consider the total contribution from the combination of products which the customer buys.
E. This would not consider the future potential of the customer.
Answer: C,D,E

NEW QUESTION: 2
HOTSPOT
You enable sharing for all users in the organization.
You need to ensure that the Atlanta users meet the sharing requirements.
What should you do? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:

Answer:
Explanation:

Explanation/Reference:
Explanation:
External sharing must be disabled.
Question Set 1

NEW QUESTION: 3
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