Project 4

Part 1

Aeronautics Company designs and manufactures electronic control systems for commercial airlines.  

Aeronautics Company does contract work for the two major aircraft makers and three other companies that make the narrow-body commercial jets.

This is a very competitive field that Aeronautics Company operates in.

It is imperative they manage the non-manufacturing overhead costs effectively in order to achieve an acceptable net profit margin.  

With declining profit margins in recent years, the CEO has become concerned that the cost of obtaining contracts and maintaining relations with its five customers may be getting out of hand.   

You have been hired to conduct a customer profitability analysis.