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The Lancashire Corporation manufactures bottled water with an average manufacturing cost of $2 per case (a case contains 24 bottles). Lancashire sold 1,000,000 cases last

The Lancashire Corporation manufactures bottled water with an average manufacturing cost of $2 per case (a case contains 24 bottles). Lancashire sold 1,000,000 cases last year to the following types of customers:

CUSTOMER PRICE PER CASE CASES SOLD
Drugstore chains $5.00 375,000
Gas station chains $5.50 125,000
Supermarket chains $6.50 500,000
Local pharmacies $6.00 250,000

The drugstore chains have special handling costs of $0.20 a case and increased administrative assistance costing $45,000 per year. The gas station chains require special marketing promotions that cost $50,000. Sales commissions of 10% are paid. The supermarket chains order electronically through EDI which costs $25,000 annually. Lancashire is responsible for shipping costs, which totaled $0.50 a case and special labels costing $0.02 per bottle. Local pharmacies have special handling costs of $0.10 per case and sales commissions are paid to agents costing $0.25 per case. Bad debt expense averages 10% of sales. What is the profit per case for drugstore chains?

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