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Can yo answer the following questions below and show any equations that are used within the cells. Thanks! Ethical Drugs Inc. (B): Customer Protability Analysis

Can yo answer the following questions below and show any equations that are used within the cells. Thanks!

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Ethical Drugs Inc. (B): Customer Protability Analysis Laurie Beancount decides further to use the ABC information to examine individual customer protability within each distribution market. She focuses rst on the "Ma and Pa Single-Store" distribution channel. Two customers are used to highlight the new insights available with the ABC approach. Data pertaining to these two customers in April are: Charleston Chapel Hill Pharmacy Pharmacy Total number of orders 12 10 Average number of line items per order 10 18 Total number of store deliveries 6 10 Average number of cartons shipped per store delivery 24 20 Average number of hours of shelf stacking per store delivery 0 0.5 Average revenue per delivery $2,400 $1,800 Average cost of goods sold per delivery $2,100 $1,650 Required: 1. Use the ABC information to compute the operating income of each customer (Charleston and Chapel Hill) in April. Comment on the results. 2. Laurie ranks the individual customers in the "Ma and Pa" single-store distribution market on the basis of operating income. The cumulative (revised) operating income of the top 20% of customers is $75 ,680. Ethical Drugs reports negative (revised) operating income of $31,247 for the bottom 40% of its customers. Make recommendations that you think Ethical Drugs should consider in light of this new customer-protability information

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