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(A) You are an account manager at Owens & Minor. You have two customers on a stockless program. Below are each customer's activity levels, activity

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(A) You are an account manager at Owens & Minor. You have two customers on a stockless program. Below are each customer's activity levels, activity rates, and customer level costs. See Alpha Hospital- Customer Profitability Statement (Exhibit 4 in Owens & Minor, Inc. Case A). Draft a customer profitability statement for Beta Hospital using the format shown in Exhibit 4. Activity Rates Customer Level Costs Edi Order Cost $ 4.50/ edi order Procurement $ 1,486 Non-Edi Order Cost $ 9.01on-edi order Labeling $ 1,000 Line Cost $ 0.66/line Account Mgmt $ 991 Delivery Cost $ 457.58/delivery Occupancy $ 1,007 Interest Cost 8.64% per annum Group Fees $ 750 Emergency Order Cost $ 25/emergcy order Shipping and Handling $ 130/delivery Activity Levels Alpha Hospital Beta Hospital Sales/month $ 150,000 $ 150,000 Orders/month 750 333 Lines/month 15,000 10,000 Deliveries/month 12 10 % EDI orders 25% 95% Days Sales Outstanding (DSO) 60 15 Emergency Orders/month 20 10 Vendor Discounts $ 4,035 $ 4,035 Cost-Plus % 15% 15%

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