Pharmacy Company has two customers CVX and Ma & Pa with data as follows:

	CVX	Ma & Pa
Selling price per unit	$40.00	$40.00
Units Sold	4,500	3,800
Manufacturing Cost per unit	$14.00	$14.00
Number of Purchase Orders	25	155
Number of Deliveries	107	183
Number of Expedited deliveries	189	250
Customer Visits	44	85

Pharmacy Companys management accountant gathered the following ABC rate information:

	ABC Cost Rate
Purchase Orders	$216 per purchase order
Deliveries	$112 per delivery
Expedited Deliveries	$131 per expedited delivery
Customer Visits	$ 62 per customer visit

Using the information in the tables above and allocating indirect support costs using ABC to customers, what is the Operating Income for the CVX customer?

Multiple Choice

• $ 59,400

• $ 72,129

• $ 117,000