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Please see attached photos. Thank you in advance!!! Figure Eight Inc. is a distributor of pharmaceutical products its ABC system has five activities (Click the
Please see attached photos. Thank you in advance!!!
Figure Eight Inc. is a distributor of pharmaceutical products its ABC system has five activities (Click the licon 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 He focuses first on the mom-and-ppp single-store distribution market. Two customers are used to exemplify the insights avalsable with the ABC approach. Data pertaining to these two customers in August are as follows (Click the icon to viow the customers' ddata.) Requirement 1. Use the ABC information to compote the operating income of each customer in August Conument on the fesults and what if anythisg. Flair should do. (Round your answors to the nearest whole dollac. Uso parentheses or a ninus sign for operating losses) \begin{tabular}{ll} \multicolumn{1}{c}{ Activity Area } & \multicolumn{1}{c}{ Cost Driver Rate } \\ \hline 1. Order processing & $42 per. order \\ 2. Line-item ordering & $2 per line item \\ 3. Store deliveries & $47 per store delivery \\ 4. Carton deliveries & $4 per carton \\ 5. Shelf-stocking & $20 per stocking-hour \end{tabular} 1. Use the ABC information to compute the operating income of each customer in August. Comment on the results and what, if anything. Flair should do. 2. Flair ranks the individual customers in the mom-and-pop single-store distribution market on the basis of monthly operating income. The cumulative operating income of the top 20% of customers is $54,230. 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
Thank you in advance!!!
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