**SkiBlu, Ltd. Customer Analysis**SkiBlu, Ltd. divides its customers into two categories: Gold and Silver. The company has specific customer representative allocations and salary structures to serve each customer group effectively. Here is a detailed breakdown:### Customer Data:- **Total Number of Customers:** 121,000 - Gold Customers: 41,000 - Silver Customers: 80,000- **Customer Representative Allocation:** - 1 full-time representative per 1,000 Gold customers - 1 full-time representative per 10,000 Silver customers- **Average Customer Representative Salary:** - $81,000 for both Gold and Silver representatives- **Promotion Costs:** - Total: $5,000,000 - 90% allocated to Gold customers- **Average Gross Margin per Customer:** - Gold: $715 - Silver: $320### Task Requirements:**a.** Calculate the totals of the following items for both Gold and Silver customers: - Total gross margin. - Customer representative salaries and bonuses. - Promotion costs. - Excess of gross margin over customer costs.**b.** Determine which customer category is more profitable.### Calculation Instructions:1. **Total Gross Margin:** Multiply the average gross margin per customer by the number of customers in each category.2. **Customer Representative Salaries & Bonuses:** Calculate based on the number of representatives required for each customer group.3. **Promotion Costs:** Allocate the total promotion costs based on the percentage dedicated to Gold customers.4. **Excess of Gross Margin Over Customer Costs:** Subtract customer costs (salaries, bonuses, and promotions) from the total gross margin for each category.Enter your calculated results in the respective fields under the "Gold" and "Silver" columns. This will help determine which segment yields higher profitability for SkiBlu, Ltd.

SkiBlu, Ltd., divides its customers into Gold customers and Silver customers. The company has one full-time customer representative per 1,000 Gold customers and one full-time customer representative per 10,000 Silver customers. Customer representatives receive salaries plus bonuses of 10 percent of customer gross margin. SkiBlu spends 90 percent of its promotion costs on Gold customers to encourage their loyalty. Customer Costs Number of customers Average customer representative salary Promotion costs Average gross margin per customer Total 121,000 $5,000,000 Gold 41,000 $ 81,000 $ 715 Silver 80,000 $ 81,000 $ 320 Required: a. Calculate the totals of the items below for both gold and silver customers, as well as the excess of gross margin over customer cost for each category. b. Which customers are more profitable? Answer is not complete.

SkiBlu, Ltd., divides its customers into Gold customers and Silver customers. The company has one full-time customer representative per 1,000 Gold customers and one full-time customer representative per 10,000 Silver customers. Customer representatives receive salaries plus bonuses of 10 percent of customer gross margin. SkiBlu spends 90 percent of its promotion costs on Gold customers to encourage their loyalty. Customer Costs Number of customers Average customer representative salary Promotion costs Average gross margin per customer Total 121,000 $5,000,000 Gold 41,000 $ 81,000 $ 715 Silver 80,000 $ 81,000 $ 320 Required: a. Calculate the totals of the items below for both gold and silver customers, as well as the excess of gross margin over customer cost for each category. b. Which customers are more profitable? Answer is not complete.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject: acounting
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