Kronecker Company, a growing mailorder clothing and accessory company, is concerned about its growing MSDA expenses. It. therefore. examined its customer ordering patterns for the past year and identified four types of customers. as illustrated in the following table. Kronecker sends catalogs and flyers to all its customers several times a year. lClrders are taken by mail or over the phone. Kronecker maintains a toll-free number for customers to use when placing orders over the phone. Kronecker prides itself on the personal attention it provides shoppers who order over the phone. All purchases are paid for by check or credit card. Kronecker has a very generous return policy if customers are not satised with the merchandise received. Customers must pay return shipping charges. but their purchase price is then fully refunded. Customer Type 4 Customer Type 3 Customer Customer Type 1 Type 2 Initial sales 51,000 ELDUD 52.5EID 53. N u mber of items returned Dollar value of items returned Number of orders per yea r Number of phone orders per year 125 hour Time spent on phone placing orders il Number of overnight deliveries Number of regular deliveries II... Prices are set so that cost of goods sold averages about T596 of the sales price. Customers pay actual shipping chargesy lout extra processing is required for overnight deliveries. Kronecker has developed the following activity cost driver rates for its support costs: Activity Activity cost driver rate Process phone orders $312! per hour Process retums $5 per item returned Process overnight delivery requests 54 per request Maintain customer relations [Send catalogs and respond to $50 per year customer comments or complaints] {a} Using ABC, determine the yearly prot associated with each of the four customers described. {lo} Comment on which customers are most protable and why. {cl 1What advice do you have for Kronecker regarding managing customer relationships with the different types of customers represented