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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.
