Veritek Wholesalers operates at capacity and sells furniture items to four department-store chains (customers). Mr.\ Veritek commented, We apply ABC to determine product-line profitability. The same ideas apply to customer\ profitability, and we should find out our customer profitability as well. Veritek Wholesalers sends catalogs to\ corporate purchasing departments on a monthly basis. The customers are entitled to return unsold merchandise\ within a six-month period from the purchase date and receive a full purchase price refund. The following data\ were collected from last years operations:\ Veritek has calculated the following activity rates:\ Required:\ Customers pay the transportation costs. The cost of goods sold averages 75% of sales. Determine the contribution\ to profit from each customer last year. Comment on your solution.\ Customer\ 1 2 3 4\ Gross sales $40,000 $20,000 $110,000 $95,000\ Sales returns:\ Number of items 96 24 64 32\ Amount $ 8,000 $ 3,000 $ 7,700 $ 9,000\ Number of orders:\ Regular 30 140 55 100\ Rush 8 46 12 45\ Activity Cost-Driver Rate\ Regular order processing $30 per regular order\ Rush order processing $150 per rush order\ Returned items processing $15 per item\ Catalogs and customer support $1,200 per customer Required:\ Customers pay the transportation costs. The cost of goods sold averages 75% of sales. Determine the contribution\ to profit from each customer last year.