A few customers cost more to serve than the revenues they generate. Identify the most appropriate way to handle these customers
A) Attempt to turn away the unprofitable customers.
B) Provide services at a discounted rate to these customers.
C) Avail preferential treatment to these customers.
D) Design specific marketing messages for these customers.
A
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In 2006, Luther Incorporated paid a special dividend of $7 per share for the 120 million shares outstanding. If Luther has instead retained that cash permanently and invested it into Treasury bills earning 5%,
Consider the following tax rates: Year Corporate Tax Rate Capital Gains Rate Ordinary Income Rate Dividend Rate 1997-2000 35% 20% 40% 40% 2001-2002 35% 20% 39% 39% 2003-2010 35% 15% 35% 15% then the present value (PV) of the additional taxes paid by Luther would be closest to ________. A) $42.00 million B) $235.20 million C) $294 million D) $588.00 million
Recommend a course of action for Don and support your decision
What will be an ideal response?