Homeland Research Services: customer profitability
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Homeland Research Services (HRS) conducts personnel background checks and supplier reliability research for government agencies and corporations. Using the following information, prepare a customer profitability statement.
Personnel Supplier
HRS Profitability Total Checks Reliability
Contribution margin ratio 61.8% 65.0% 60.0%
Revenues $11,000,000 $4,000,000 $7,000,000
Customer Sales to Government
Sales of: Agencies Corporations
Personnel Checks 100% 80% 20%
Supplier reliability 100% 20% 80%
Operating costs traced to customers $5,500,000 $1,400,000 $4,100,000
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Solution Summary
Your report is attached and contrasts a product profitability with a customer profitability report (both shown). Computations are in the cells (click on formula in cell to see).
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
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