New owners purchased Qing Qing, and are unhappy with the internal reports available to them. One concern is that there is no process in place to evaluate the protability of individual customers. The following information has been gathered: a) When an order is received from a customer, the credit status of the customer must be checked before the order is accepted. Once accepted, the items ordered are entered into the system and the quantities ordered compared to the quantities on hand. A picking document is created for the warehouse staff, listing the quantity ordered or on hand, whichever is fewer. b) Warehouse staff then retrieves the inventory items from the warehouse and packages them on pallets for shipment. The pallets are then shipped to the customers using Qing Qing trucks. There are established routes, so that each location has inventory delivered once per week. Shipments in Manitoba are made Mondays, Wednesdays and Fridays, with Saskatchewan shipments occurring on Tuesdays and Thursdays. If the customer requires a shipment between normal shipping dates, it can normally be accommodated but requires the driver to extend the route on the shipping date nearest the customer, which lengthens the trip signicantly. The cost is dependent upon the extra time taken to deliver to the customer who placed the rush order. 0) Customer support is provided through salespeople; each customer has a specic salesperson assigned. Meetings with salespeople have been carried out online during Covid. Activity Total cost of activity Cost driver Total volume of cost driver Order acceptance $27,000 # of orders received 6,000 Order entry $63,000 # of different products 180,000 Picking inventory $162,000 # of different products 180,000 Packing for shipment $81,000 # of pallets delivered 9,000 Shipping costs $168,000 # 0f kms driven 150,000 Rush shipments $10,000 # of hours to customer 200 Salesperson support $300,000 # of customers 240 Total overhead costs $811,000