Please answer all of the questions. If you cannot please do not answer. Please show work. This is one question.

is a distributor of pharmaceutical products. Its ABC system has five activities: (Click the icon to view the activities.) the controller of HQ Drugs, wants to use this ABC system to examine individual customer profitability within each distribution market. i (Click the icon to view additional information.) Read the requirements. () Requirement 1. Use the ABC information to compute the operating income of each customer in August 2017. Comment on the results and what, if anything, Flair should do. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for operating losses.) Charleston Pharmacy - X - X Data table More info Revenues Cost of goods sold Gross margin Cost Driver Rate in 2017 $44 per order He focuses first on the Ma and Pa single-store distribution market. Using only two customers helps highlight the insights available with the ABC approach. Data pertaining to these two customers in August 2017 are as follows: Operating costs Charleston Pharmacy Ann Arbor Pharmacy Operating income(loss) $5 per line item $53 per store delivery $2 per carton Total orders 14 8 Average line items per order 11 $13 per stocking-hour Total store deliveries 4 Requirements Average cartons shipped per store delivery 19 Average hours of shelf-stocking per store delivery 0.25 Done 1. Use the ABC information to compute the operating income of each customer in August 2017. Comment on the results and what, if anything, Flair should do. Average revenue per delivery 2,600 $ Average cost of goods sold per delivery 2.100 S 2. Flair ranks the individual customers in the Ma and Pa single-store distribution market on the basis of monthly operating income. The cumulative operating income of the top 20% of customers is $52,740. HQ Drugs reports operating losses of $27,060 for the bottom 40% of its customers. Make four recommendations that you think HQ Drugs should consider in light of this new customer-profitability information. Print Print Done Activity Area 1. Order processing 2. Line-item ordering 3. Store deliveries 4. Carton deliveries 5. Shelf-stocking Print $ $ Done 20 8 23 0.75 1,800 1,450