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Customer Profitability Management starts out with a financial model that can tell you the profitability of any existing customer or new piece of business. The model should use ActivityBased Costing (ABC) allocations and feature both fullcost and variable cost assessments, and allow you to easily look at options for improving profitability. It should tell you the Net Profit and Return on Investment (ROI) percentage for a customer, considering both variable and fixed costs.
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