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lustrial Supplies has decided to analyze the profitability of its customers. It buys recycled paper 20 per case and sells to retail customers at a

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lustrial Supplies has decided to analyze the profitability of its customers. It buys recycled paper 20 per case and sells to retail customers at a list price of $26 per case. Data pertaining to the e customers are: Alpha Beta Nu Cases sold List selling price Actual selling price Number of purchase orders Number of customer visits Number of deliveries Miles traveled per delivery Number of expedited deliveries 2,000 $26 $24.00 40 15 50 20 10 20,000 $26 $25.00 20 45,000 $26 $24.50 35 10 65 50 dustrial Supplies five activities and their cost drivers are: Activity Order taking Customer visits Deliveries Product handiing Expedited deliveries$250 per expedited delivery Cost Driver Rate $100 per purchase order $200 per customer visit S8 per delivery mile trateled $1.20 per case sold Compute the customer-level operating income of each of the three retail customers ow being examined What insights should managers gain analysis of customer profitability in (1) What factors should managers consider in deciding whether to drop one or more of the ? finmanae_testban doc docx (6).docx HEWLETT-PACKARD

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