To begin, select a company of your choice. It may be the company you work for, a company that you have worked for in the past, or a company that you would like to work for, and, after briefly explaining the relationship between cost allocation and customer profitability, focus your response on the following five main factors that your chosen company could use to evaluate customer profitability:
Likelihood of customer retention
Potential for sales growth
Long-run customer profitability
Increases in overall demand from having well-known customers
The ability to learn from customers
Discuss how and why examining these variables could help your chosen company increase its overall profitability.