A financial analyst for Simon Manufacturing prepared the following report: Customers...

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Accounting

A financial analyst for Simon Manufacturing prepared the following report:

Customers

CustomerLevel Operating Income

Customer Revenue

A

$5,891.00

$26,250

B

$4,952.00

$30,000

C

$3,835.00

$15,000

D

$1,963.50

$7,300

E

$984.80

$5,100

F

$844.80

$4,400

G

$336.60

$1,800

H

$252.00

$4,500

I

($168.00)

$2,400

J

($676.00)

$2,600

Which of the following conclusions can be drawn from the report?

image

A. The cumulative customer-level operating income of the top eight customers represents about 104.6% of operating income B. All customers provide positive contribution towards profitability C. Customer B has the second highest operating income margin D. All profitable customers achieve customer level operating income in excess of 20%

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