The small account of Charles Lamb and Son is absoulutely profitable.

For
the reason that, first the cost of merchandise sold is eighty percent of sales so if the
riders company place one order a week for three hundred US dollar the total cost is
two hundred forty US dollar.

Next a sale call cost the company thirty US dollar, if a company salesman
makes one call a week on Easy Rider Company the total cost deducted in a call is
two hundred ten US dollars.

Then packing, billing and delivery expenses is approximately fifteen US

dollar per order minus total cost the balance will be one hundred ninety five US
dollars.

And finally, the advertising and promotion cost is three percent of sales that
would be seven US dollor and two cents, that conclude the total cost less than
seven dollars and two cents, that will be one hundred eighty seven US dollar and
eighty cents total cost a week.

To make this account more profitable, the company or the Charles Lamb and
Son should lessen their inventory stock level from eigtheen percent to fifteen
percent delivery. This might be the steps to make it profitable. Because, if the
merchandise sold is eigthy percent, the remaining twenty percent takes about a
couple of week to dispose, the delivery of stock level is the key to make the
account profitable.