The customer profit margin divides
A)Customer net profit by customer revenue.
B)Customer net profit by customer profit margin.
C)Customer revenue by customer net profit.
D)Customer profit margin by customer revenue.

Question

Quizplus · Accepted Answer

The customer profit margin formula is calculated by dividing the customer's net profit by the customer's revenue. This gives a percentage or ratio of the profit earned from each dollar of revenue generated by the customer. Therefore, option A is the correct choice.

The Customer Profit Margin Divides