$1.$Compare the estimated costs you calculate using an activity$-$based cost system to the estimated costs using the current system of allocating customer service costs. What causes the different costing methods to produce different results? Which costing system provides management of JBI with better information? Why?

$2.$What are the strategic implications of your analysis? What recommendations do you have for the management of JBI?

$3.$What if you were the management at Johnson Beverage, Inc., and you were presented with the possibility of having to negotiate a lower price with this customer?$-$

$4.$What are all the possible reasons you can think of that your competitor can approach this account with a lower price, but you are unable to$?$