Cale Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Cale sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Cale that cost Cale $100 to buy from manufacturers, Cale would charge the hospital $108 to purchase these supplies. For years, Cale believed that the 8% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Cale decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown: Activity Cost Pool (Activity Measure) Total Cost Total Activity Customer deliveries (Number of deliveries) $ 560,000 7,000 deliveries Manual order processing (Number of manual orders) 304,000 4,000 orders Electronic order processing (Number of electronic orders) 200,000 10,000 orders Line item picking (Number of line items picked) 612,500 490,000 line items Other organization-sustaining costs (None) 610,000 Total selling and administrative expenses $ 2,286,500 Cale gathered the data below for two of the many hospitals that it servesGeorgetown and Providence (each hospital purchased medical supplies that had cost Cale $33,000 to buy from manufacturers): Activity Activity Measure University Memorial Number of deliveries 11 26 Number of manual orders 0 45 Number of electronic orders 20 0 Number of line items picked 190 210 Required: 1. Compute the total revenue that Cale would receive from Georgetown and Providence. 2. Compute the activity rate for each activity cost pool. 3. Compute the total activity costs that would be assigned to Georgetown and Providence. 4. Compute Cale's customer margin for Georgetown and Providence. (Hint: Do not overlook the $33,000 cost of goods sold that Cale incurred serving each hospital.