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5-37 Activity-based costing, merchandising. Pharmahelp, Inc., a distributor of special pharmaceutical products, operates at capacity and has three main market segments: General supermarket chains Drugstore

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"5-37 Activity-based costing, merchandising. Pharmahelp, Inc., a distributor of special pharmaceutical products, operates at capacity and has three main market segments: General supermarket chains Drugstore chains Momandpop single-store pharmacies Rick Flair, the new controller of Pharmahelp, reported the following data for 2017." " For many years, Pharmahelp has used gross margin percentage [(RevenueQCostofgoodssold)Revenue] to evaluate the relative profitability of its market segments. But Flair recently attended a seminar on activitybased costing and is considering using it at Pharmahelp to analyze and allocate 0ther operating costs He meets with all the key managers and several of his operations and sales staff, and they agree that there are five key activities that drive other operating costs at Pharmahelpz" "Each customer order consists of one or more line items. A line item represents a single product (such as Extra-Strength Tylenol Tablets). Each product line item is delivered in one or more separate cartons. Each store delivery entails the delivery of one or more cartons of products to a customer. PharmahelpOs staff stacks cartons directly onto display shelves in customerso stores. Currently, there is no additional charge to the customer for shelf-stocking and not all customers use Pharmahelp for this activity. The level of each activity in the three market segments and the total cost incurred for each activity in 2017 is as follows: Compute the 2017 grossmargin percentage for each of Pharmahelps

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