Case Requirements and Grading Rubric Dakota Office Products 1. Why was Dakota's existing pricing system inadequate for its current operating environment? 2. Develop and activity-based cost system for Dakota Office Products (DOP) based on the year 2000 data. Calculate the activity cost-driver rate for each DOP activity in 2000 . 3. Using your answer to Question 2, calculate the profitability of Customer A and Customer B. 4. What explains any difference in profitability between the two customers? 5. What are the limitations, if any, to the estimates of the profitability of the two customers? 6. Assume that Dakota applies the analysis done in Question 3 to its entire customer base. How could such information help Dakota managers increase company profits? 7. Suppose that a major customer switched from placing all its orders manually to placing all its orders over the intemet site. How should this affect the activity cost driver rates calculated in Question 2? How would the switch affect Dakota's profitability? For each case, the analyses should be no more than two to four double-spaced pages with 12-inch Times New Roman font and one-inch margins (top, sides, and bottom). Appendices may be attached with computations and other supplementary information. Dakota Office Products Case Study Grading Rubric Case Requirements and Grading Rubric Dakota Office Products 1. Why was Dakota's existing pricing system inadequate for its current operating environment? 2. Develop and activity-based cost system for Dakota Office Products (DOP) based on the year 2000 data. Calculate the activity cost-driver rate for each DOP activity in 2000 . 3. Using your answer to Question 2, calculate the profitability of Customer A and Customer B. 4. What explains any difference in profitability between the two customers? 5. What are the limitations, if any, to the estimates of the profitability of the two customers? 6. Assume that Dakota applies the analysis done in Question 3 to its entire customer base. How could such information help Dakota managers increase company profits? 7. Suppose that a major customer switched from placing all its orders manually to placing all its orders over the intemet site. How should this affect the activity cost driver rates calculated in Question 2? How would the switch affect Dakota's profitability? For each case, the analyses should be no more than two to four double-spaced pages with 12-inch Times New Roman font and one-inch margins (top, sides, and bottom). Appendices may be attached with computations and other supplementary information. Dakota Office Products Case Study Grading Rubric