Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Five Star is a distributor of pharmaceuticals products. The cost management staffs have just completed a customer profitability analysis, at the request of the financial
Five Star is a distributor of pharmaceuticals products. The cost management staffs have just completed a customer profitability analysis, at the request of the financial controller, Mr Glen Brown. The following information forms the basis for analysis: Customer-driven activities Order processing Line-item ordering Store deliveries Carton deliveries Shelf-stocking Cost driver rate $40 per order $3 per line item $50 per store deliveries $1 per carton $16 per stocking hour Cost driver data for two of Five Star's major customers for September 2019 are as follows: Medinova Pharmacy 13 9 Total orders Average line items per order Total store deliveries Average cartoons shipped per store delivery Average hours of shelf-stocking per store delivery Average revenue per delivery Average cost of goods sold per delivery 7 22 0 $2,400 $2,100 Popular Pharmacy 10 18 10 20 0.5 $1,800 $1,650 Required: Question 4.1 Prepare a customer profitability analysis for both Medinova Pharmacy and Popular Pharmacy for March 2021 and Comment on the relative profitability of two customers. [Word limit for later part: 100 words. Note the word count at the end of your answer] (14 marks) Your Answer (Insert rows/columns and expand the space as required)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started