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Pharmassist, Inc., a distributor of special pharmaceutical products, operates at capacity and has three main market segments. Rick Flair, the new controller of Pharmassist, reported
Pharmassist, Inc., a distributor of special pharmaceutical products, operates at capacity and has three main market segments. Rick Flair, the new controller of Pharmassist, reported the following data for
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For many years, Pharmassist has used gross margin percentage to evaluate the relative profitability of its market segments.
But Flair recently attended a seminar on activitybased costing and is considering using it at Pharmassist to analyze and allocate "other operating costs."
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The level of each activity in the three market segments and the total cost incurred for each activity in is as follows:
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Requirement Compute the grossmargin percentage for each of Pharmassist's three market segments. Enter the percent to two decimal places.
tableSupermarket Chains,$Gross margin,tableRevenue
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tablePharmassist tableGeneralupermarketChainstableDrugstoreChainstableMomandPopSingle StoresPharmassisttableRevenuesCost of goods sold$$
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