Taylors Cheesecakes supplies cheesecakes to three large supermarket chains. Management has become concerned about the rising costs associated with the processing and dispatch of orders. An activity analysis of the indirect costs identified the following customer-related costs: Use of cost driver Supermarket customer Activity cost pool Orders processing Cost driver Estimated indirect costs Total expected use of cost driver* 1 2 3 Number of orders $200 000 450 300 100 S 50 Returns processing Delivery Number of returns $ 50 000 100 50 25 25 Number of deliveries $100 000 700 400 200 100 Rush orders Sales visits Number of rush orders Number of visits $ 70 000 50 10 20 20 $ 20 000 100 50 25 25 "Expressed in units of measure of the driver. Sales are marked up 50% on cost. The customer-related costs of each of the three customers suggests: Customer 1 has higher customer-related costs than both Customers 2 and 3 Customer 2 has higher customer-related costs than both Customers 1 and 3 Customer 1 has higher customer-related costs than Customer 2 but less than Customer 3 Customer 3 has higher customer-related costs than Customer 1 but less than Customer 2