Question 3: (24 marks) Disney Forever is a toy producer and wholesaler in Australia and New Zealand. The company has classified its customers to three categories: small, medium and large according to their usual order size or sales volume. Mickey Forever's management has started a relatively simple customer profitability analysis project. The following table show the results of this analysis project: Small Medium Large Total $1,681,080 $1,920,360 $3,000,000 $6,601,440 $924,594 $1,056,198 $1,800,000 $3,780,792 Sales revenue Direct costs of sales Use of product-related activities Number of orders received Number of deliveries made 96 42 192 54 76 132 60 268 Indirect costs and their cost drivers are defined in the table below: Estimated indirect costs Activity cost pool Cost driver Orders filling costs Number of orders Distribution-related costs Number of deliveries Marketing promotion/sales Sales dollars Administration-related costs Number of deliveries $504,000 $1,002,000 $1,122,000 $552,720 Required: a. Using the activity analysis results, assign the activity costs to each of the three customer categories. [8 marks) Click or tap here to enter text. b. Calculate the profitability of each of the customer categories and draw an appropriate conclusion from your analysis. [10 marks/ Hints: conduct a customer profitability analysis based on the above customer related indirect costs. Click or tap here to enter text. c. The management of Disney Forever is concerned about the increasing competition in the industry. They have acknowledged that customer relationship management is very important for the company's growth. Advise the management on what critical strategic factors should be monitored in addition to the financial profitability analysis. /6 marks/