j10 P.12.7 MNP Suits is a ready-to-wear suit manufacturer. It has four customers: two wholesale-channel customers and two retail-channel customers. MNP Suits has developed the following activity-based cost- ing system Activity Cost driver Rate in next year Order processing Number of purchase orders 21,225 per order Sales visits Number of customer visits 7,150 per visit Delivery-regular Number of regular deliveries 1,500 per delivery Delivery rushed Number of rushed deliveries 4.250 per delivery List selling price per suit is 1,000 and average cost per suit is 3550. The CEO of MNP Suits wants to revaluate the profitability of each of the four customers in the current year to explore opportunities for increasing the profitability of his company in next year. The following data are available for the current year: Item Wholesale customers Retail customers w Total number of orders 44 62 212 250 Total number of sales visits 8 12 Regular deliveries 41 166 190 Rush deliveries Average number of suits per order 400 200 30 25 Average selling price per suit 2800 1850 1900 REQUIRED: (1) Calculate the customer-level operating income, current year. (1) What do you recommend to the CEO of MNP Suits to do to increase the company's operating income next year? (i) Assume MNP Suits distribution channel cost are 717.50,000 for its wholesale customers and 10,50,000 for the retail cus- tomers. Also, assume that its corporate sustaining costs are +12,50,000. Prepare the income statement of MNP Suits for the current year. H R 22 20 48 14 3 46 60 700