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HQ Drugs Inc. is a distributor of pharmaceutical products. Its ABC system has five activities: E:: (Click the icon to view the activities.) Rick Flair,
HQ Drugs Inc. is a distributor of pharmaceutical products. Its ABC system has five activities: E:: (Click the icon to view the activities.) Rick Flair, the controller of HQ Drugs, wants to use this ABC system to examine individual customer profitability within each market. Two customers are used to exemplify the insights available with the ABC approach. Data pertaining to these two cus (Click the icon to view the customers' data.) Requirement 1. Use the ABC information to compute the operating income of each customer in August. Comment on the res dollar. Use parentheses or a minus sign for operating losses.) Tint (Cies the icon la vicw the actritus) to view the activities.) roller of HQ Drugs, wants to use this ABC system to examine individual customer profitability within each distributic mers are used to exemplify the insights available with the ABC approach. Data pertaining to these two customers in to view the customers' data Activities results and v Customers' data iutor of pharmaceutical products. Its ABC system has five activities: w the activities.) f HQ Drugs, wants to use this ABC system to examine individual customer profitability within each distribution ma re used to exemplify the insights available with the ABC approach. Data pertaining to these two customers in Aug. w the customers' data.) Required 1. Use the ABC information to compute the operating income of each customer in August Comment on the results and what, if anything, Flair should do. 2. Flair ranks the individual customers in the mom-and-pop single-store distribution market on the basis of monthly operating income. The cumulative operating income of the top 20% of customers is $54,230. HQ Drugs reports operating losses of $21,240 for the bottom 40% of its customers. Make four recommendations that you think HQ Drugs should consider in light of this new customer profitability information
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