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Profitability for regional and national customers

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Bow House Architectural, Ltd. (BHA), produces commercial and residential architectural designs for national and regional construction firms. It submits designs in competitive bidding and considers the costs of unsuccessful designs as a cost of sales. Marketing efforts have focused on increasing sales of specific designs, but administrative efforts have focused on customer relations. Use this information to complete the following requirements: (see attached for chart).

a. Estimate BHA's customer profitability for regional and national customers.
b. Even if national design customers are less profitable than regional design customers, why might BHA continue to seek them?

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The solution explains how to calculate the profitability for regional and national customers.

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