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Figure Eight is a distributor of pharmaceutical products. Its ABC Rick Flair, the controller of Figure Eight, wants to use system has five activities: this
Figure Eight is a distributor of pharmaceutical products. Its ABC Rick Flair, the controller of Figure Eight, wants to use system has five activities: this ABC system to examine individual customer (Click the icon to view the activities.) profitability within each distribution market. (Click the icon to view additional information.) Read the 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, Flair should do. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for operating losses.) More info 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: Data table 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 $57,920. Figure Eight reports operating losses of $18,290 for the bottom 40% of its customers. Make four recommendations that you think Figure Eight should consider in light of this new customer-profitability information
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