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Safe Paper Delivery has decided to analyze the profitability of five new customers. It buys recycled paper at $11 per case and sells to retail

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Safe Paper Delivery has decided to analyze the profitability of five new customers. It buys recycled paper at $11 per case and sells to retail customers at a list price $15.00 per case. Data pertaining to the five customers are: (Click the icon to view the data.) Safe Paper Delivery's five activities and their cost drivers are: (Click the icon to view the activities and cost drivers.) Read the requirements Requirement 1. Compute the customer-level operating income of each of the five retail customers now being examined (1, 2, 3, 4, and 5). Comment on the resu Begin by calculating each customer's gross margin. Then calculate the operating income for each customer. (Complete all answer boxes. Enter a "o" for any zere balances. Use parentheses or a minus sign for operating losses.) Begin by calculating each customer's gross margin. Then calculate the operating income for each customer. (Complete all answer boxes. Enter a "O" for any zero balances. Use parentheses or a minus sign for operating losses.) Gross margin Choose from any list or enter any number in the input fields and then click Check Answer 1 2,000 $15.00 $15.00 Customer 2 3 8,760 66,400 $15.00 $15.00 $14.75 13.00 31 39 3 5 41 69 4 34,700 $15.00 $14.49 5 2,900 $15.00 $13.50 Cases sold List selling price Actual selling price Number of purchase orders Number of customer visits Number of deliveries Miles traveled per delivery Number of expedited deliveries Cost Driver Rate Activity Order taking Customer visits $160 per purchase order Deliveries $90 per customer visit $3 per delivery mile traveled $0.60 per case sold $400 per expedited delivery Product handling Expedited deliveries 1. Compute the customer-level operating income of each of the five retail customers now being examined (1, 2, 3, 4, and 5). Comment on the results. 2. What insights do managers gain by reporting both the list selling price and the actual selling price for each customer? 3. What factors should managers consider in deciding whether to drop one or more of the five customers? 1. Compute the customer-level operating income of each of the five retail customers now being examined (1, 2, 3, 4, and 5). Comment on the results. What insights do managers gain by reporting both the list selling price and the actual selling price for each customer? 3. What factors should managers consider in deciding whether to drop one or more of the five customers

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