1. Lynnwood Ltd. is reviewing two of its customers using ABC analysis. It has identified the following customer related activities and their rates:

   Activity	Cost Driver	Rate
   Sales	# of visits	$450
   Order processing	# of orders	$125
   Product handling	# of units	$12
   Special shipping	# of shipments	$500

   The company has the following information regarding Enbright Ltd. and Jackson Inc.:

   Activity	Enbright Ltd.	Jackson Inc.
   # of visits	9	6
   # of orders	18	24
   Product handling (number of units)	650	380
   Special shipping (number of shipments	15	30

   Sales for Enbright and Jackson are $280,000 and $148,000 respectively. The cost of goods sold on these sales are the same at 52%.

   What is the customer level operating income for Jackson?

   		$76,960
   		$45,780
   		$112,800
   		$148,000