Healthy Limited (Healthy) is a distributor of pharmaceutical products. Richard Li, the controller of Healthy, wants to use this ABC system to examine individual customer profitability within each distribution market. Its ABC system has five activities: Cost Driver Rate in 2015 S40 per order Activity Area Order processing 2. Line-item ordering S3 per line itenm 3. Store deliveries 4. Carton deliveries SI 5. Shelf-stocking S50 per store delivery per carton S16 per stocking-hour Richard focuses first on the single-store distribution market. Using only two customers helps highlight the insights available with the ABC approach Data pernaining to these two customers in July 2015 are as follows: 13 Total orders Average line items per order Total store deliveries Average cartons shipped per store delivery 10 10 20 Average hours of shelf-stocking per store delivery Average revenue per delivery Average cost of goods sold per delivery 0.5 $1,800 $2.400 S2.100 S1,650 Required: (a) Use the ABC information to compute the operating income of each customer in July 2015. Comment on the results. (b) Healthy ranks the individual customers in the single-store distribution market on the basis of monthly operating income. The cumulative operating income of the top 20% of customers is $116,240. Healthy reports operating losses of $47,340 for the bottom 40% of its customers. Make three recommendations that you think Healthy should consider in light of this new customer-profitability information