figure 4

Data table Cost Driver Rate in 2020 Activity Area 1. Order processing 2. Line-item ordering 3. Store deliveries $36 per order $7 per line item $53 per store delivery $3 per carton $16 per stocking-hour 4. Carton deliveries 5. Shelf stocking Print Done - X Requirements 1. Use the ABC information to compute the operating income of each customer in August 2020. Comment on the results and what, if anything, Flair should do. 2. Flair ranks the individual customers in the Ma and Pa single-store distribution market on the basis of monthly operating income. The cumulative operating income of the top 20% of customers is $58,120. Figure Four reports operating losses of $18,290 for the bottom 40% of its customers. Make four recommendations that you think Figure Four should consider in light of this new customer-profitability information Print Done Figure Four is a distributor of pharmaceutical products. Its ABC system has five (Click the icon to view the activities) activities Rick Flair, the controller of Figure Four, wants to use this ABC system to examine individual customer profitability within each distribution market, Click the icon to view additional information ) Read the wouirement Requirement 1. Use the ABC Information to compute the operating income of each customer in August 2020. Comment on the results and what, if anything, Fluie should do. (Round your answers to the nearest whole dollar Use parentheses or a minus sign for operating tones) San Diego Pharmacy Revenues Cost of goods sold Grossmann Operating costs Operating income (0) Help me solve this Etext pages Get more help - Clear all Check answer 14 He focuses first on the Ma and Pa single-store distribution market. Using only two customers helps highlight the insights available with the ABC approach. Data pertaining to these two customers in August 2020 are as follows: San Diego Pharmacy Houston Pharmacy Total orders 9 Average line items per order 10 16 Total store deliveries 6 7 Average cartons shipped per store delivery 20 18 Average hours of shelf stocking per store delivery 0.25 0.75 Average revenue per delivery 2,650 $ 1.750 Average cost of goods sold per delivery 2,050 $ 1.450 if el Print Done