Worley lCompany buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 5%. For example, if a hospital buys supplies from Worley that had cost Worley $101] to buy from manufacturers, Worley would charge the hospital $105 to purchase these supplies. Page 323 For years, Worley believed that the 5% markup covered its selling and administrative expenses and provided a reasonable prot. However, in the face of declining prots Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five acn'vities as shown below: mm:- [ammonium-n) .......... Ir mm: 6.0:!) \"It Mmudlrmmdmlm MM llutlln Mhmpm [mm-r mums-mun] .......................... mum 12.5mm Luella! um minblrlhimm ...... ammo manner-m mmmmm m1 ......... mm \"mmwm m ........... ammo Worley gathered the data below for two of tlie many hospitals tliat it servesUniversity and Memorial (both hospitals purchased a total quantity of medical supplies that had cost Worley