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Write My Essay For MeThe problem in the case is that Carolina Creation’s operating income shrank as their sales increased. It is because as the number of customers increased, they did not bring in enough profits. So the question is which customer(s) is(are) profitable. When we find out the customers’ profitability, we need to find out why some are not profitable, and others are. Then you should create strategies to improve customer profitability.
When you analyze the case, you think the activities are not appropriate to use in cost allocation. Create one for yourself. If you think the measures for the activities do not make sense, create one for yourself. You are helping Carolina Creation to solve the problem. You decide what indicators/measures are reasonable to analyze customer profitability.
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