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Stable Paper Delivery has decided to analyze the profitability of five new customers. It buys recycled paper at $12 per case and sells to
Stable Paper Delivery has decided to analyze the profitability of five new customers. It buys recycled paper at $12 per case and sells to retail customers at a list price of $14.90 per case. Data pertaining to the five customers are: (Click the icon to view the data.) Stable Paper Delivery's five activities and their cost drivers are as follows: (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 results. Begin by calculating each customer's gross margin. Then calculate the operating income for each customer. (Complete all input fields. Enter a "0" for any zero balances. Use parentheses or a minus sign for operating losses.) Gross margin 2 3 4 5
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