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please show all work & explain 1-3 Chapter 7 Pricing Decisions, Customer Profitability, and Cost Management 7-29 Customer profitability, distribution. Green Paper Delivery has decided

please show all work & explain 1-3 image text in transcribed
Chapter 7 Pricing Decisions, Customer Profitability, and Cost Management 7-29 Customer profitability, distribution. Green Paper Delivery has decided to the profitability of five new customers. It buys recycled paper at $20 per case and sells to retail customer list price of $26 per case. Data pertaining to the five customers are: All custo discount 1. Ca Customer 2. D Cases sold 1,830 1.950 6,780 $26 $25.20 44,500 $26 $24.30 31.200 $26 $25.80 7-3 salva the s dear the List selling price Actual selling price Number of purchase orders Number of customer visits Number of deliveries Miles traveled per delivery Number of expedited deliveries Green Paper Delivery's five activities and their cost drivers are: Activity Order taking Customer visits Deliveries Product handling Expedited deliveries Cost Driver Rate $90 per purchase order $75 per customer visit $3 per delivery mile traveled $1.20 per case sold $250 per expedited delivery ired 1. Compute the customer-level operating income of each of the five retail customers now being examine (1,2,3,4, and 5). Comment on the results. 2. What insights do managers gain by reporting both the list selling price and the actual selling price for som customer? 3. What factors should managers consider in deciding whether to drop one or more of the five customers

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