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system to prepare a product-line profitability report for FS 3. Wh at new insights does the ABC system in requirement 2 provide to 5-28 ABC, wholesale, customer profitability. Veritek Wholesalers operate ture items to four department-store chains (customers). Mr. Veritek commted mine product-line profitability. The same ideas apply to customer profitabiinty cu Olesalers operates at capacity and se "We apply ABC to de out our we should omtability as well." Veritek Wholesalers sends catalogs to corporate purchas date and receive a full purchase price refund. The following data were c e within a six-month period from collected from last on a monthly basis. The customers are entitled to return unsold merchandise merchandise with urchasing departments year's operations: Customer 2 S40,000 $20,000 $10,000 $5,000 32 S 8,000 3,000 7,700 9,000 100 Gross sales Sales returns: 24 64 Number of items Amount 96 Number of orders 140 46 30 Regular Rush 12 45