Original Paper Delivery has decided to analyze the profitability of five new customers. It buys recycled paper at $11 per case and sells to retail customers at a list price of $15.40 per case. Data pertaining to the five customers are: F: (Click the icon to view the data.) Original Paper Delivery's five activities and their cost drivers are as follows: E (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 Data table Customer 1 2 4 5 Gross margin 3 61,200 Cases sold 2,020 8,850 33,000 2.400 $15.40 $15.40 $15.40 $15.40 $15.40 Data table $15.40 $15.06 $13.20 $14.86 $13.87 13 28 39 24 37 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 5 4 2 Activity Order taking 15 38 69 33 37 21 8 10 12 43 Customer visits Cost Driver Rate $120 per purchase order $50 per customer visit $3 per delivery mile traveled $0.40 per case sold $310 per expedited delivery 0 0 0 0 3 Deliveries Product handling Expedited deliveries Help me solve this Print Done Requirements 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. 2. What insights do managers gain by reporting both the list selling price and the actual selling price for each customer? 3. What factors should managers consider in deciding whether to drop one or more of the five customers? Print Done