Pricing waterfallRandolph Company's product mix has become more diverse over the past few years. Consequently,the company undertook an ABC initiative to develop accurate costs for production, as well asmarketing, selling distribution, and administration. The company set list prices that would providea profit regardless of whether the customer orders were complex or routine.Nevertheless, profits have been falling. The company's management team decided to examinediscounts that had been granted to determine whether these are the reason for poor performanceManagement was surprised to learn that customers were taking advantage of a large number ofpossible discounts or allowances, including the following:$1)$ Volume discount if $20$ or more units are ordered: $2\%2)$ Paying in full in $15$ days: $3\%3)$ Cooperative advertising allowance for featuring the company'sproducts in its advertisements: $4\%4)$ Taking a large shipment before the end of the quarter in advanceof an expected increase in demand: $5\%5)$ Online ordering discount: $2\%6)$ Rebate on sales during specific promotional periods: $2\%$The management team believed that some discounting was necessary to acquire and retainlarge customers. On deeper investigation, the team learned that some of their smaller customers,who were most often the most cost conscious, took advantage of every discount or allowanceoffered. To compare discounts taken, they compared customers $1$ and $2.$Customer $1$ is a long$-$time customer with sales of $$200,000$ at list prices. The customertakes advantage of each discount or allowance listed in the preceding table. Moreover, thiscustomer has been a loyal customer since Randolph's inception. In appreciation, Randolph'ssales representative offers free freight, which amounts to $3\%$ of the customer's list$-$pricepurchases from Randolph.Customer $2$ is a more recently acquired customer, with sales of $$1,000,000$ at list prices. ThisThis customer takes advantage of only items $1,3,$ and $5$ in the preceding table.What is the total discount percentage taken by each customer?Enter as a percent.Customer $1$ Answer$\%$Customer $2$ Answer$\%$