Requirements 1. Compute the 2017 gross-margin percentage for each of Medassist's three market segments. 2. Compute the cost driver rates for each of the five activity areas. 3. Use the activity-based costing information to allocate the $286,500 of "other operating costs" to each of the market segments. Compute the operating income for each market segment. 4. Comment on the results. What new insights are available with the activity-based costing information? Medassist, Inc., a distributor of special pharmaceutical products, operates at capacity and has three main market segments. Rick Flair, the new controller of Medassist, reported the following data for 2017 : (Click the icon to view the data.) For many years, Medassist 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 Medassist 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.) Read the equirements. Data table 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 Medassist: 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. Medassist'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 Medassist for this activity. Data table