1. Compute Worley's customer margin forUniversity(in dollars)

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11:36 AM Sun Oct 11 42% learn-us-east-1-prod-fleet01-xythos.s3.amazonaws.com C + Bb Course Notes - Fall... Bb My Blackboard Cont... x A learn-us-east-1-pro... Chapter 7 Homework Find related images.. Google BH Lenses: Camera Len... and provided a reasonable profit. However, in the face of declining profits Worley 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 below: Activity Cost Pool (Activity Measure) Total Cost Total Activity Customer deliveries (Number of deliveries). ....... .. . $ 500,000 5,000 deliveries Manual order processing (Number of manual 248,000 4,000 orders orders)..... Electronic order processing (Number of electronic 200,000 12,500 orders orders). . ... Line Item picking (Number of line items picked) .... ... 450,000 450,000 line Items Other organization-sustaining costs (None) ..... 602,000 Total selling and administrative expenses $2,000,000 Worley gathered the data below for two of the many hospitals that it serves-University and Memorial (both hospitals purchased a total quantity of medical supplies that had cost Worley $30,000 to buy from its manufacturers): Activity Activity Measure University Memorial Number of deliveries . . . 10 25 Number of manual orders. .. ..... 0 30 Number of electronic orders ..... . ... 15 0 Number of line items picked . . ..... .. 120 250 Required