Best Drugs is a distributor of pharmaceutical products. Its ABC system has five activities: Next Question Rick Flair, the cd each distribution market. gs, wants to use this ABC system to examine individual customer profitability within Data Table - X More Info f each customer in Au parentheses or a Cost Driver Rate in 2017 $45 per order 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: $7 per line item Activity Area 1. Order processing 2. Line-item ordering 3. Store deliveries 4. Carton deliveries 5. Shelf-stocking Millburn Pharmacy Charleston Pharmacy $54 per store delivery $4 per carton $12 per stocking-hour 14 8 12 17 7 7. Total orders Average line items per order Total store deliveries 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 19 23 Requirements 0.25 0.5 $ 2,450 $ 1,950 $ 2,000 $ 1,550 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 $64,050. Best Drugs reports operating losses of $25,820 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