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question 7: see attached photos for data tables and all question parts. answer all parts/requirements. i will give like/thumbs up for correct answer! thank you
question 7: see attached photos for data tables and all question parts. answer all parts/requirements. i will give like/thumbs up for correct answer! thank you for your help!!
Requirement 1. Compute the 2017 gross-margin percentage for each of Pharmahelp's three market segments. (Enter the percent to two decimal places.) Data table Requirement 3. Use the activity-based costing information to allocate the $309,925 of "other operating costs" to each of the market segments. Compute the operating income (loss) for each market segment. Pharmacare, Inc., a distributor of special pharmaceutical products, operates at capacity and has three main market segments. Rick Flair, the new controller of Pharmacare, reported the following data for 2017 : (Click the icon to view the data.) For many years, Pharmacare has used gross margin percentage to evaluate the relative profitability of its market segments. But Flair recently attended a seminar on activity-based costing and is considering using it at Pharmacare to analyze and allocate "other operating costs." (Click the icon to view the activities and relevant information.) The level of each activity in the three market segments and the total cost incurred for each activity in 2017 is as follows: (Click the icon to view the activity level and cost information) Requirement 2. Compute the cost driver rates for each of the five activity areas. (Round activity rates to three decimal places, X.XXX.) Begin by selecting the formula you will use. Then calculate the rate for each activity area and determine the allocation base. Data table Compute the operating income for each market segment. (Use parentheses or a minus sign when entering operating losses.) Requirement 4. Comment on the results. What new insights are available with the activity-based costing information? Before commenting on the results, calculate the operating income (loss) percentage for each marketing segment. First select the formula labels and then calculate the percentage. (Enter the percent to two decimal places. Use parentheses or a minus sign when entering operating losses.) Data table He meets with all the key managers and several of his operations and sales staff, and they agree that there are five key activities that drive other operating costs at Pharmacare: Each customer order consists of one or more line items. A line item represents a single product (such as Extra-Strength Tylenol Tablets). Each product line item is delivered in one or more separate cartons. Each store delivery entails the delivery of one or more cartons of products to a customer. Pharmacare's staff stacks cartons directly onto display shelves in customers' stores. Currently, there is no additional charge to the customer for shelf-stocking and not all customers use Pharmacare for this activity Step by Step Solution
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