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QUESTION

Q18-3: SkinTan's top five customers generate sales revenue of 950,000 per annum.

Sales

250,000

250,000

200,000

150,000

100,000

Gross margin %

30%

25%

21%

37%

39%

Distribution expenses

30,000

14,000

25,000

12,000

6,000

Fixed costs

30,000

25,000

16,000

15,000

10,000

Carry out a customer profitability analysis and make recommendations in relation to any future strategies SkinTan should take in relation to its top customers.

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