The process of determining the effects of one key variable on the overall outcome of a pro forma income statement, for example, is known as:

After calculating the CLV of its customers, American Auto Supplies identified its most profitable customers and also found that a significant percentage of its customers are unprofitable

Which of the following actions would American Auto Supplies most likely take based on these findings? A) fire its unprofitable customers B) offer the highest level of customer service to its unprofitable customers C) encourage unprofitable customers to become product champions D) discontinue discounts for all but its most profitable customers E) provide slightly lower levels of customer service to its most profitable customers

What do these results suggest about the relationship between the total loan amount and number of loans?

A) As the number of loans increases, the total loan amount at first decreases, then increases. B) As the number of loans increases, the total loan amount also increases. C) As the number of loans increases, the total loan amount at first increases, then decreases. D) As the number of loans increases, the total loan amount decreases at a decreasing rate.