Problem: Great Chocolates sells two types of candy - bars and gift boxes to two types of customers - airlines and gift shops:
|
Great Chocolates Product Profitability
|
Total
|
Ban
|
Gift Boxes
|
|
Contribution Margin Ratio
|
58%
|
50% 60%
|
|
Revenues
|
$8,000,000
|
$2,000,000 $6,000,000
|
|
Customer sales to:
|
|
Airlines
|
Gift Shops
|
|
Bars
|
100%
|
80%
|
20%
|
|
Gift Boxes
|
100%
|
10%
|
90%
|
|
|
|
|
500,000
|
Required to do:
1) Using the information above, prepare a customer profitability statement in absolute dollar amounts.
2) Using the information above prepare a common-size profit statement.