$.$ has a lower gross margin percentage and consumes resources to obtain this lower margin. 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:

bottom $40\%$ of its customers. Make four recommendations that you think HQ Drugs should consider in light of this new customer$-$profitability information.

Pay $$ attention to the top $20\%$ of the customers.

Work out ways internally at HQ Drugs to

Work with customers so that their behavio$$

Offer salespeople bonuses based on the $$

the rate per cost driver.

the total "system$-$wide" costs.

of each customer rather than the gross margin of each customer.

Data table