=+5 Shelf-stocking $16 per stocking-hour Geoff Strong, the management accountant of Ross Ltd, wants to use this ABC system to examine individual customer profitability within each distribution market. He focuses first on the single-store distribution market. Two customers are used to exemplify the insights available with the ABC approach. Data pertaining to these two customers in August 2014 are as follows:

Charleston Pharmacy Chapel Hill Pharmacy Total orders 13 10 Average line items per order 9 18 Total store deliveries 7 10 Average cartons shipped per store delivery 22 20 Average hours of shelf-stocking per store delivery 0 0.5 Average revenue per delivery $2400 $1800 Average cost of goods sold per delivery $2100 $1650 Required 1 Use the ABC information to calculate the operating profit of each customer in August 2014. Comment on the results and what, if anything, Geoff Strong should do.