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Figure Eight is a distributor of pharmaceutical products. Its ABC system has five activities: (Click the icon to view the activities) Rick Flair, the controller of Figure Eight wants to use this ABC system to examine individual customer profitability within each distribution market. (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.) Albany Pharmacy Revenues Cost of goods sold Gross margin Operating costs Enter any number in the edit fields and then click Check Answer 3 parts remaining Clear All Check Answer Figure Eight is a distributor of pharmaceutical products. Its Rick Flair, the controller of Figure Eight, wants to use this ABC system has five activities: ABC system to examine individual customer profitability (Click the icon to view the activities.) within each distribution market. (Click the icon to view additional information.) Read the requirements 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.) Albany Pharmacy Revenues Cost of goods sold Gross margin Operating costs Operating income loss) Enter any number in the edit fields and then click Check Answer 3 parts remaining Clour All Check Answer ght is a distributor of pharmaceutical products. Its tem has five activities: ck the icon to view the activities.) Rick Flair, the controller of Figure Eight, wants to use this ABC system to examine individual customer profitability within each distribution market. i Requirements ults and who sign for opel ses or a nues 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. 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 $55,680. Figure Eight reports operating losses of $20,180 for the bottom 40% of its customers. Make four recommendations that you think Figure Eight should consider in light of this new customer-profitability information of goods sold ss margin erating costs rating income Print Done er any number ? parts remaining Clear All Check Answer Fig 1 More Info AB He focuses first on the Ma and Pa singlo-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: the mil Albany Pharmacy 17 Buffalo Pharmacy 13 6 21 Re 8 13 @d 24 23 Total orders Average line items per order Total store deliveries Average cartons shipped per store delivery Average hours of shelf-stocking per store delivery Average revenue per delivery Average cost of goods sold per delivery Gr 0.5 op S 0.25 2.250 $ 2,150 $ 1,950 1,700 S Od Ent Print Done Clear An Check Answer 3 remaining a distributor of pharmaceutical products. Its as five activities: icon to view the activities.) Rick Flair, the controller of Figure Eight, wants to use ti ABC system to examine individual customer profitability within each distribution market. (Click the icon to view additional information.) Read the requirements. Use parentheses or a nd what, if anyth or operating loss i Data Table ods sold argin Activity Area 1. Order processing 2. Line-item ordering 3. Store deliveries 4. Carton deliveries 5. Shelf-stocking Cost Driver Rate in 2017 $37 per order $7 per line item $49 per store delivery $3 per carton $16 per stocking-hour costs ag income(loss) my number in the ed Print Done S aining heck
