Question 4: the year Scenario company supplies furniture to three local retailers, Dunny, Penner, and Victor The following exhibit presents representative revenues and costs of Scenario by customers 2019. Additional information on Scenario's costs for different activities at various levels of the cost hierarchy is as follows: Sales Cost of goods sold Danny Penner Viese $540,000 Total Materials-handling labour $340,000 $450,000 $1,300,000 370,000 220,000 380,000 5970,000 written off as amortization) Materials-handling equipment (Cost 47,000 20,000 37,000 $104,000 Rent 10,000 6,000 8,000 $34.000 14,000 Marketing support 8,000 14,000 $36,000 12,000 9,000 11,000 $12,000 Purchase orders and delivery processing 13,000 7,000 12,000 $32,000 General administration 20,000 12,000 16,000 $48,000 Total operating costs 486,000 282,000 478,000 $1,346,000 Operating income $54,000 $58,000 $28,000 $84,000 1. Materials-handing labor costs vary with the number of units of furniture shipped to customers. 2. Different areas of the warehouse stock furniture for different customers. Materials-handling equipment in an area and amortization costs on the equipment are identified with individual customer accounts. Any equipment not used remains idle. The equipment has a one-year useful life and zero disposal price. 3. Scenario allocates rent to each customer account on the basis of the amount of warehouse space occupied by the products to be shipped to that customer. 4. Marketing costs vary with the number of sales visits made to customers. 5. Purchase order costs vary with the number of purchase orders received; delivery processing costs vary with the number of shipments made. 6. Scenario allocates fixed general administration costs to customers on the basis of dollar sales made to each customer. Required: 1. What are the relevant costs and relevant revenues when Scenario company considers dropping the Victor Inc. as a custom because of COVID-19? 2. Please calculate the operating income(loss) if Scenario drop Victor Inc. as a custom 3. Should Scenario keep Victor as a customer or just drop it? Why?