Beat Drugs is a distributor of pharmaceutical products. Its ABC system has five advibes Click the joon to view the activities) Rick Flair, the controller of Best Drugs, wants to use this ABC system to examine individual customer pepfitability within each distribution market Click the icon to view additional information) Read the requirements Requirement 1. Use the ABC information to compute the operating income of each customer in August 2017. Comment on the results and what, if anything. Flar should do. (Round your answers to the nearest whole dolar. Use parentheses or a minus sign for operating losses Buffalo Pharmacy Revenues 9000 8000 Cost of goods s Gros margin 200 Operating s Operating income Ceutical pro es.) More info He focuses first on the Ma and Pa single-store distribution market. Using only two customers helps highlight the insights available with the ABC approach. Data pertaining to these two customers in August 2017 are as follows: Average line items per order Total store deliveries sation to con minus sign fo Total orders ffalo macy 9000 8800 200 Average cartons shipped per store delivery Average hours of shelf-stocking per store delivery Average revenue per delivery Average cost of goods sold per delivery -X system to examine individual Buffalo Pharmacy Ann Arbor Pharmacy und your answers to the nearest 12 11 8 20 4 9 21 18 0.25 0.5 $ 2,250 $ 1,950 2,200 $ 1,550 Print Done all Check answer Data table I cy to comput sign for op Activity Area 1. Order processing 2. Line-item ordering 4. Carton deliveries 9000 3. Store deliveries 3800 200 5. Shelf-stocking Cost Driver Rate in 2017 $40 per order $3 per line item $46 per store delivery $5 per carton $14 per stocking-hour ults and what, if anything, Drint Done Requirements 1. Use the ABC information to compute the operating income of each customer in August 2017. Comment on the results and what, if anything, Flair should do. 2. Flair ranks the individual customers in the Ma and Pa single-store distribution market on the basis of monthly operating income. The cumulative operating income of the top 20% of customers is $52,740. Best Drugs reports operating losses of $20,180 for the bottom 40% of its customers. Make four recommendations that you think Best Drugs should consider in light of this new customer-profitability information. Print Done I do. (Round Cancel Clear all