O = Homework: Chapter 15 Cost Allocation Question 7, P15-31 (similar to) Part 1 of 7 HW Score: 15.69%, 1.88 of 12 points O Points: 0 of 1 Save Safe Paper Delivery has decided to analyze the profitability of five new customers. It buys recycled paper at $12 per case and sells to retail customers at a list price of $15.20 per case. Data pertaining to the five customers are: (Click the icon to view the data.) Safe Paper Delivery's five activities and their cost drivers are as follows: B (Click the icon to view the activities and cost drivers.) Read the requirements. Requirement 1. Compute the customer-level operating income of each of the five retail customers now being examined (1, 2, 3, 4, and 5). Comment on the results. Begin by calculating each customer's gross margin. Then calculate the operating income for each customer. (Complete all input fields. Enter a "0" for any zero balances. Use parentheses or a minus sign for operating losses.) 1 2 3 4 5 Gross margin - Data table Customer 1 2 4 5 2,010 8,830 63,400 34,700 2,100 $15.20 $15.20 $15.20 $15.20 $15.20 $15.20 $14.80 $13.00 $14.64 $13.72 13 30 32 25 41 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 1 2 8 4 2 15 40 62 34 41 20 8 10 12 43 0 0 0 0 3 Print Done Data table Cost Driver Rate Activity Order taking Customer visits Deliveries Product handling Expedited deliveries $130 per purchase order $80 per customer visit $3 per delivery mile traveled $0.50 per case sold $400 per expedited delivery Print Done Data table Cost Driver Rate Activity Order taking Customer visits Deliveries Product handling Expedited deliveries $130 per purchase order $80 per customer visit $3 per delivery mile traveled $0.50 per case sold $400 per expedited delivery Print Done