P.10.7 Alpha limited has decided to analyse the profitability of its five new customers. It buys bottled water at 390 per case and sells to retail customers at a list price of 108 per case. The data pertaining to five customers are: Customers B D E Cases sold 4,680 19,688 1,36,90 71,550 8,775 List selling price 2108 108 108 108 Actual selling price 108 106.20 99 104.40 97.20 Number of purchase orders 15 25 30 25 30 Number of customer visits 2 3 6 2 3 Number of deliveries 10 30 60 40 20 Kilometers travelled per delivery 20 6 5 10 30 Number of expedited deliveries 0 0 0 0 108 1 y47 10.28 Its five activities and their cost drivers are: Activity Cost driver rate Order taking 2750 per purchase order Customer visits 3600 per customer visit Deliveries *5.75 per delivery km travelled Product handling +3.75 per case sold Expedited deliveries 32.250 per expedited delivery REQUIRED: (1) Compute the customer-level operating income of each of five retail customers now being examined (A,B,C,D and E). Comment on the results. (ii) What insights are gained by reporting both the list selling price and the actual selling price for each customer? (iii) What factors should Alpha Limited consider in deciding whether to drop one or more of five customers