and has three main market segments. Rick Flair,

reported the following data for $2020$

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 Pharmassist:

Activity Area

Order processing

Line$-$item processing

Delivering to stores

Cartons shipped to store

Stocking of customer store shelves

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. Pharmassist's staff stacks cartons directly onto display shelves in customers' stores. Currently, there this activity.

Compute the $2020$ gross$-$margin percentage for each of Pharmassist's three market segments.

Compute the cost driver rates for each of the five activity areas.

Use the activity$-$based costing information to allocate the $$313,075$ of "other operating costs $$ to each of the market segments. Compute the operating income for each market segment.

Comment on the results. What new insights are avallable with the activity$-$based costing information?

Data table

$\backslash$table$[[$Pharmassist $2020,,\backslash$table$[[$General$],[$Supermarket$],[$Chains$]],\backslash$table$[[$Drugstore$],[$Chains$]],\backslash$table$[[$Mom$-$and$-$Pop$],[$Single Stores$]],$Pharmassist$],[$Revenues$,s,3,704,000,3,145,000,1,988,000,8,837,000$