A financial analyst for Simon Manufacturing prepared the following report:

Which of the following conclusions can be drawn from the report?
A) All profitable customers achieve customer level operating income in excess of 20%
B) Customer B has the second highest operating income margin
C) The cumulative customer-level operating income of the top eight customers represents about 105.0% of operating income
D) All customers provide positive contribution towards profitability

Question

A financial analyst for Simon Manufacturing prepared the following report:

Which of the following conclusions can be drawn from the report?
A) All profitable customers achieve customer level operating income in excess of 20% 
B) Customer B has the second highest operating income margin 
C) The cumulative customer-level operating income of the top eight customers represents about 105.0% of operating income 
D) All customers provide positive contribution towards profitability

Quizplus · Accepted Answer

The cumulative operating income for the top eight customers is $17,697.70 and with the operating income of $16,853.70, the cumulative customer-level operating income as a percentage of operating income is about 105.0% ($17,697.70/$16,853.70)

A Financial Analyst for Simon Manufacturing Prepared the Following Report