Olivia Pharmaceutical manufactures and distributes Rodri, a patented drug that is very effective for blood clots. Currently the company only has four customers: two drug distributors - East Jamie and West Kaleb, and two local pharmacies - Mars and Park. Pharmaceutical industry is heavily regulated, nd the government had decided on a maximum retail price (MRP) for Rodri. The MRP of Rodgi was set at $6,900 per box of 10,000 capsules, while the full production cost is $4,750 per box. Olivia Pharmaceutical allowed its sales force to give discounts to increase number of quantity sold. The Company is currently analyzing the profitability of its customers using the following activitybased costing information and most recent annual cost information.

Customer-Related Activities Cost Driver Base Total Cost of Cost per unit of Activity ($) Cost Driver ($) Order Processing Cost Number of sales order 997,500 4,750 Regular Delivery Cost Number of regular shipments 612,000 4,500 Overnight Delivery Cost Number of overnight shipments 888,000 12,000 Cost of Sales Visits Number of customer visits 495,000 6,600CustomerRelated . Activities Cost Driver Base Order Processing Cost Number of sales order Regular Deliver Cost Number of regular shipments Cost of Sales Visits Number of customer visits Quantity Sold (in boxes) 2 25? 3 650 l 010 Percentage Discount Given by Sales Force 8. 50% 35% 150% 2 90% General Selling Costs (in S) 12412300 23723300 6273200 605,400 General Admin Costs (in 0) 1059 000 1 104 600 4?0 400 454 100