ustomers. It buys recycled paper at $12 per case and sells to retail customers at a list price of $14.50 i Data Table - X Customer 1 2 3 4 5 2,100 66,400 32,000 2,800 8,800 $14.50 $14.50 $14.50 $14.50 $14.50 $14.50 $14.21 12.90 $13.96 $12.99 13 22 40 35 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 25 2 1 4 5 3 15 32 70 34 35 16 9 10 12 37 0 0 0 0 3 Print Done wwer unit volume than Customer One major explanation is that the most profitable customer has a disc then continue to the next question. uys recycled paper at $12 per case and sells to retail customers at al I customers now being examined (1, 2, 3, 4, and 5). Comment on the res me for each customer. (Complete all answer boxes. Enter a "0" for any zer 3 i Data Table Cost Driver Rate Activity Order taking Customer visits Deliveries Product handling Expedited deliveries $110 per purchase order $90 per customer visit $1 per delivery mile traveled $0.50 per case sold $360 per expedited delivery Print Done Time Remaining: 02:56:06 S is Question: 1 pt 1 of 4 (0 complete This Test: 4 pt trong 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 lat price of $14.50 per case. Data pertaining to the five customers are (Click the icon to view the data.) Strong Paper Delivery's five activities and their cost drivers are Em (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 answer boxes. Enter a 'o for any zero balances Use parentheses or a minus sign for operating losses) 2 4 5 1 3 Gross margin Total customer-level operating costs Customer level operating income (105) Now comment on the results Customer is the most profitable customer, despite having a lower unit volume than Customer volume One major explanation is that the most profitable customer has a discount per case than the customer with the higher unit Choose from any list or enter any number in the input fields and then continue to the next question Q Search or enter website name Time Remaining 58:40 Sub 1 of 4 complete This Test 4 Strong Paper Delivery has decided to walyze the profitability of five new customers. It buys recycled paper ut $12 per case and sells to retall customers at a lat price of $1450 percase Data pering to the trusteners (Click the icon to view the data) Strong Paper Delivery's five activities and their costres (Click the icon to view the activities and cost drivers.) Read the requirements Total customer-level operating costs Customer-level operating income (s) Now comment on the results Customer is the most profitable customer, despite having a lower unit volume than Customer One major explanation is that the most profitable customer has a volume. Customer is the least profitable, while the smaller Customer is more profitable. The last profitable customer receives as discount per case makes frequent orders, requires customers, and requires delivery miles than the smaller customer discount per case than the customer with the higher An analysis of this information shows that larger volume customers Requirement 2. What insights do managers gain by reporting both the list selling price and the actual selling price for each customer? Separato reporting of both the list coling price and the actual soling price enables Strong Distribution to examine got larger discounts Requirement 3. What factors should managers consider in deciding whether to drop one or more of the five customers? (Select all that poly) A. Why is the cost of goods sold amount higher for some customers than others? B. How long has each customer been in business? c. What is the expected future profitability of each customer? D. Are there externalities from having some customers, even if they are unprofitable in the short? Choose from any list or enter any number in the input fields and then continue to the next