Complete this question by entering your answers in the tabs below. What is the excess...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Complete this question by entering your answers in the tabs below. What is the excess of gross margin over customer costs for each category of customer? Complete this question by entering your answers in the tabs below. Which customers are more profitable? Kresge Lodging has an elite program for its card members. There are three levels, based on total nights stayed: Diamond ( 50 nights or more); Platinum (25 nights or more); and Base (fewer than 25 nights). In order to facilitate reservations and answer customer questions, Kresge Lodging provides access to special customer service representatives, who work exclusively with the designated level (Diamond, and so on). Customer representatives receive salaries plus bonuses of 5 percent of customer gross margin. The company provides various perquisites (free nights, upgrades, and so on) to its members, with 75 percent of the cost of the perquisites used for the benefit of Diamond members, 20 percent for Platinum members, and 5 percent for Base members. The gross margin received by Kresge is the amount received from the participating hotels for a customer's stay. Required: a. What is the excess of gross margin over customer costs for each category of customer? b. Which customers are more profitable
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!