Question Hep Drugs is a distributor of pharmaceutical products. Its ABC system has five activities (Cick the ion to view the activities) Rick Flair, the controller of HO Drugs, wants to use this ABC system to examine individual customer profieabily aith each distribution market (Cick the icon to vwiew addtional information ) Read the equirements quirement 1. Use the ABC inlomation to compute the operating income of each customer in Auguest 2017 Comment on the nesults and what t anything Flair shud do ound a minus sign for operating losses) your answers to the nearest whole dollar Use parentse Ann Arbor Albany PharmacyPharmacy Requirements Data Table evenues ost of goods sols Gross margin Operating costs . Use the ABC information to compute the operating income of each customer Cost Driver Rate in 2017 n August 2017 Comment on the resuts and what if anything Flar should Activity Area Onder processing $37 per orde 2 Line- ordering56 per line tem 3. Stone deliveries$54 per store delivery 4. Carton shores 55. Shell-stocking$20 per stocking hour 2. Flair ranks the individual customers in the Ma and Pa single-store distbution market on the basis of monthly operaing income The cumulative operating income of the n 20% of customers sS64060HQOgs reports operatng losses of $28 560for the b dem 40% ofits customers ecommendations that you think HQ Druge should eonsider in ight of th Make four S5 per canon has a lower goss margin percentage adl Requirement 2. Flar ranks the indidual customers in the Ma an income Th n ight of thi operating losses of $28550 for the bottom 40% of its customers 1.Pay 2. Work out ways internally at HQ Drugn to 0. Work with customers so that their behawor Enter any number in the edat nelds and then continue to tne next question PeintDone Print Done terton to the top 20% of the customers the rate per cost diver the total "system wide" cost Question Hep Drugs is a distributor of pharmaceutical products. Its ABC system has five activities (Cick the ion to view the activities) Rick Flair, the controller of HO Drugs, wants to use this ABC system to examine individual customer profieabily aith each distribution market (Cick the icon to vwiew addtional information ) Read the equirements quirement 1. Use the ABC inlomation to compute the operating income of each customer in Auguest 2017 Comment on the nesults and what t anything Flair shud do ound a minus sign for operating losses) your answers to the nearest whole dollar Use parentse Ann Arbor Albany PharmacyPharmacy Requirements Data Table evenues ost of goods sols Gross margin Operating costs . Use the ABC information to compute the operating income of each customer Cost Driver Rate in 2017 n August 2017 Comment on the resuts and what if anything Flar should Activity Area Onder processing $37 per orde 2 Line- ordering56 per line tem 3. Stone deliveries$54 per store delivery 4. Carton shores 55. Shell-stocking$20 per stocking hour 2. Flair ranks the individual customers in the Ma and Pa single-store distbution market on the basis of monthly operaing income The cumulative operating income of the n 20% of customers sS64060HQOgs reports operatng losses of $28 560for the b dem 40% ofits customers ecommendations that you think HQ Druge should eonsider in ight of th Make four S5 per canon has a lower goss margin percentage adl Requirement 2. Flar ranks the indidual customers in the Ma an income Th n ight of thi operating losses of $28550 for the bottom 40% of its customers 1.Pay 2. Work out ways internally at HQ Drugn to 0. Work with customers so that their behawor Enter any number in the edat nelds and then continue to tne next question PeintDone Print Done terton to the top 20% of the customers the rate per cost diver the total "system wide" cost
