Calculate the gross contribution and net contribution for each customer and

rank them by net contribution. The sales pattern for each customer is:

Customer A - $1,150,000; Customer B - $1,375,000; Customer C - $1,650,000

Hawkesbury Doughnuts Company supplies doughnuts to three large supermarket chains throughout Australia. Management has become concerned about the rising costs associated with the processing and dispatch of orders. An activity analysis of the indirect costs identified the following customer-related costs. Use of cost driver Supermarket customer Total Activity cost Estimated Cost driver indirect expected pool costs use of cost A B driver* Orders processing Number of orders $500,000 390 230 130 20 Returns processing Number of returns $ 175,000 175 55 45 45 Delivery Number of $195,000 620 450 230 130 deliveries Rush orders Number of rush $ 130,000 180 45 35 35 orders Sales visits Number of visits $ 85,000 170 40 30 30 *Expressed in units of measure of the driver. Sales mark-up is 50 per cent on cost. DE