Ontario Ltd. is a company that manufactures climbing rope for mountaineering and rescue operations. They sell various types of rope to four distributors: Alpine Adventures Corporation (A), Mountain Supply Coop (M), Bigfoot Safety Supply Ltd. (B), Elite Mountain Equipment (E). Currently Ontario Ltd. does not charge extra fees for any order and delivery related costs. The company president, Rolf Harris, wants an ABC customer analysis done to determine if a change in pricing policy is warranted. The customer-level cost driver rates are: Order taking $ 32 per order Product handling $5 per thousand meters Delivery by ground $1 per kilometer Delivery by air freight $15 per order (delivery to air freight company) Rush order extra cost $45 per order Rope costs $2 per meter to produce; and, sells for an average price of $3 per meter in units of 100 meters. The following table presents customer metrics: A M B E Total # of units sold 2,500 8,000 4,000 500 Number of orders 1,250 3,000 4,500 500 Ground delivery kilometers 6,250 15,000 -0- -0- Air freight deliveries 1,125 2,700 4,500 500 Number of rush orders 100 100 4,500 500 Instructions: After Preparing a customer profitability report for the president using ABC analysis, answer the following questions, 1. Total revenue from distributer A is A. $700,000. B. $650,000. C. $850,000. D. none of the above. 2. Cost of goods sold for distributer M is A. $1,600,000. B. $1,500,000. C. $1,400,000. D. none of the above 3. Total customer costs for distributer E is A. $146,250. B. $146,000. C. $145,250. D. none of the above 4. Customer profit for distributer B is A. $(50,000). B. $(25,000). C. $16,000. D. none of the above 5. Profit as a percentage of sales for A, M, B& E is A. 24%, 3%, 2%& 1% respectively. B. 24%, 3%, 1%& 5% respectively. C. 21%, 27%, -1%& 3% respectively D. none of the above.