j8 *5,445 300 825 P.12.5 RST Limited specialises in the distribution of pharmaceutical products. It buys from the pharma- ceutical companies and resells to each of the three different markets: (1) General supermarket chains (i) Drugstore chains (iii) Chemist shops The following data for the month of April current year in respect of RST Limited has been reported: General supermarket Drugstore chains Chemist shops chains Average revenue per delivery 284.975 28,875 Average cost of goods sold per delivery 82,500 27,500 4,950 Number of deliveries 2.750 In the past, RST Limited has used gross margin percentage to evaluate the relative profitability of its distribution channel. The company plans to use activity-based costing for analysing the profitability of its distribution chan- nels. The activity analysis of RST Limited is as under: Activity area Cost driver Customer purchase order processing Purchase orders by customers Line-item ordering Line-items per purchase order Store delivery Store deliveries Cartons dispatched to stores Cartons despatched to a store per delivery Shell-stocking at customer store Hours of shelf-stocking The April, current year operating costs (other than cost of goods sold) of RST Limited are 18,27970. These operating costs are assigned to five activity areas. The cost in each area and the quantity of the cost allocation basis used in that area for April, current year, are as follows: Activity area Total cost in Total unit of cost allocation base April, current year used in April, current year Customer purchase order processing 22,20,000 5,500 orders Line-item ordering 1,75,560 58,520 line items Store delivery 1,95,250 3,905 store deliveries Cartons despatched to store 2,09,000 2,09,000 cartons Shelf-stocking at customer store 28,160 1,760 hours Other data for April, current year include the following: General Drugstore Chemist supermarket chains shops chains Total number of orders 385 990 4,125 Average number of line items per order 14 12 10 Total number of store deliveries 330 825 2.750 Average number of cartons shipped per store delivery 300 80 16 Average number of hours of shelf-stocking per store delivery 3 0.6 0.1