In the Activity$-$Based Costing and the Evaluation of Customer Profitability: A Case Study: $1.$ Discuss Carolina Creations$$ practice of setting selling prices by applying a standard markup to the cost of goods sold.

a$.$ When is it appropriate to apply different markups to different customers or

purchases? $2.$The reason for identifying the operating expenses with customers was not clear to Edward and Robin. What is the rationale for this practice?