Green Paper Delivery has decided to analyze the profitability of five new customers. It buys recycled paper at $20 per case and sells to retail customers at a list price of $26.00 per case. Data pertaining to the five customers are: E (Click the icon to view the data.) Green Paper Delivery's five activities and their cost drivers are as follows: (Click the icon to view the activities and cost drivers.) Data Table Read the requirements Customer Requirement 1. Compute the customer-level operating income of each of the five retail customers now being examined (1, 2, 3, 4, and 5). Comment on 1 2 3 4 5 Begin by calculating each customer's gross margin. Then calculate the operating income for each customer. (Complete all input fields. Enter a "0" for any Cases sold 1,830 6,780 44,500 31,200 1,950 1 2 3 4 5 $26.00 $26.00 $26.00 $26.00 $26.00 $26.00 $25.20 $24.30 $25.80 $23.90 List selling price Actual selling price Number of purchase orders Number of customer visits Number of deliveries 10 18 35 16 35 3 5 12 4 12 12 28 65 25 35 Miles traveled per delivery 14 4 8 6 45 Gross margin Number of expedited deliveries 0 0 0 0 3 X Data Table Requirements Print Done 1. Activity Cost Driver Rate Order taking 2. Compute the customer-level operating income of each of the five retail customers now being examined (1, 2, 3, 4, and 5). Comment on the results. What insights do managers gain by reporting both the list selling price and the actual selling price for each customer? What factors should managers consider in deciding whether to drop one or more of the five customers? Customer visits 3. Deliveries Product handling Expedited deliveries $90 per purchase order $75 per customer visit $3 per delivery mile traveled $1.20 per case sold $250 per expedited delivery Clear All Check