Exercise 7-10 [Algo) Customer Protability Analysis [LO7-3, L074, L075] Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 7%. For example, if a hospital buys supplies from 1Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $107 to purchase these supplies. For years, Worley believed that the 7% markup covered its selling and administrative expenses and provided a reasonable prot. However, in the face of declining prots, Worley decided to implement an activitybased 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] $ 343,608 4,066 deliveries Manual order processing (Number of manual orders] 49?,666 ?,668 orders Electronic order processing (Number of electronic orders) 235,668 15,068 orders Line item picking (Number of line items picked) 5?5,803 463,668 line items Other organizationsustaining costs (None) 553,539 Total selling and administrative expenses $ 2,355,339 Worley gathered the data below for two of the many hospitals that it servesUniversity and Memorial [each hospital purchased medical supplies that had cost Worley $33,000 to buy from manufacturers]: Activity Activity Measure University Memorial Number of deliveries 1? 23 Number of manual orders a 44 Number of electronic orders 14 6 Number of line items picked 129 256 Required: 1. Compute the total revenue that Worley would receive from University and Memorial. 2. Compute the activity rate for each activity cost pool. 3. Compute the total activity costs that would be assigned to University and Memorial. 4. Compute Worley's customer margin for University and Memorial. [Hint Do not overlook the $33,000 cost of goods sold that Worley incurred serving each hospital.) .Completetliis question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the total revenue that Worley would receive from University and Memorial. University Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Customer deliveries per delivery Manual order processing per manual order Electronic order processing per electronic order Line item picking per line item picked