Question: Assigned questions: 1 . What are the operating processes at Midwest Office Products? A response presented in a diagram would be preferred. ( 1 0

Assigned questions:
1. What are the operating processes at Midwest Office Products? A response presented in a
diagram would be preferred. (10%)
2. Based on the interviews and data in the case, estimate: (40%)
a. The cost of processing cartons through the facility
b. The cost of entering electronic and manual customer orders
c. The cost of shipping cartons on commercial carriers
d. The cost per hour for desktop deliveries
3. Using this cost driver information, calculate the cost and profitability of the five orders in
Exhibit 2. Compare these costs and profitability to those calculated by Midwests existing
costing system? (10%)(use traditional costing method and activity based costing method for this question )
4. Explain the difference in profitability of the five orders calculated by the ABC system and
the companys existing cost system. (10%)
5. Based on your analysis above, what actions should john Malone take to improve Midwests
profitability? (10%)
6. Suppose customers all switch to EDI orders; no price discounts, and same quantity and mix
of orders, how does this affect Midwests profits next year? (10%)
7. Suppose Midwest eliminates 30,000 of Type 2 orders and doesnt get any new orders to
replace them, how does this affect the cost and profitability of each type of orders? (10%)
Answers provided on chegg was not correct please provide some genuine answers

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