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(B) It is one year later. Both your customers switched to activity-based pricing nine months ago. You charge each customer what it costs you to

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(B) It is one year later. Both your customers switched to activity-based pricing nine months ago. You charge each customer what it costs you to provide service, making margin only on distributor discounts. Draft new customer protability statements for both Alpha Hospital and Beta Hospital using the new activity drivers shown below. What is the cost-plus equivalent of the activity fee each customer is charged? Explain why each customer responded differently to activity-based pricing. Activity Levels Alpha Hospital Beta Hospital Sales/month $ 150,000 $ 300,000 Orders/month 400 660 Lines/month 1 1,000 20,000 Deliveries/month 7 10 % EDI orders 95% 95% Days Sales Outstanding (D80) 15 15 Emergency Orders/month 6 6 Vendor Discounts 55 4,035 $ 8,070

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