Activity-based costing, merchandising. Pharmahelp, Inc., a distributor of special pharmaceutical products, operats at capacity and has three main market segments: a. General suppermaket chains b. Drug store chains c. Mom-and-pop single-store pahrmacies
Rick Flair, the new controller of Pharmahelp, reported the following in 2014
	Pharmahelp, 2014		General Supermarket Chains	Drugstore Chains	Mom-and-Pop Single Stores	Pharmahelp
	Revenues		$ 3,708,000	$ 3,150,000	$ 1,980,000	$8,838,000
	Cost of goods sold		3,600,000	3,000,000	1,800,000	8,400,000
	Gross margin		$ 108,000	$ 150,000	$ 180,000	438,000
	Other operating costs					301,080
	Operating income					$ 136,920

For many years, Pharmahelp has used gross margin percentage [(Revenue - Cost of goods sold) / Revenue] to evaluate the relative profitability of its market segments. But Flair recently attended a seminar on activity-based costing and is considering using it at Pharmahelp to analyze and allocate "other 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 Pharmahelp:
	Activity-based Cost Data Pharmahelp, 2014 Activity		General Supermarket Chains	Drugstore Chains	Mom-and-pop Single Stores	Total Cost of Activity in 2014
	Orders processed (number)		140	360	1,500	$ 80,000	40.00
	Line-items ordered (number)		1,960	4,320	15,000	63,840	3.00
	Store deliveries made (number)		120	360	1,000	71,000	47.97
	Cartons shipped to stores (number)		36,000	24,000	16,000	76,000	1.00
	Shelf stocking (hours)		360	180	100	10,240	16.00
						301,080

Enter amount
__________	1a)	Compute the 2014 gross-margin percentage for the general supermarket chains segment.
__________	1b)	Compute the 2014 gross-margin percentage for the drugstore chains segment.
__________	1c)	Compute the 2014 gross-margin percentage for the mom-and-pop single stores segment.
		Round answers to two decimal points, i.e. 1.12%
	2)	Use the activity-based costing information to allocate the $301,080 of "other operating costs" to each
		of the market segments:
__________	2a)	General supermarket chains segment
__________	2b)	Drugstore chains segment
__________	2c)	Mom-and-pop single stores segment
		Compute the operating income for each market segment:
__________	2d)	General supermarket chains segment
__________	2e)	Drugstore chains segment
__________	2f)	Mom-and-pop single stores segment
	3)	Compute the gross-margin percentage for each segment under activity-based costing:
		Round answers to two decimal points, i.e. 1.12%
__________	3a)	General supermarket chains segment
__________	3b)	Drugstore chains segment
__________	3c)	Mom-and-pop single stores segment

301,080