Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
A customer purchases 10,000/year of products at 40% contribution margin.
A customer purchases 10,000/year of products at 40% contribution margin. Technical service cost to help the customer is $1500/year while net working capital is 20% of revenues.
Assuming cost of capital is 12% then what is the pocket margin associated with the customer?