Figure Four is a distributor of pharmaceutical products. Its ABC system has five activities: Activitv Area . Order processing 2. Line-item ordering 3. Store deliveries 4. Carton deliveries 5. Shelf-stocking Cost Driver Rate in 2012 $40 per order $3 per line item $50 er store deli Sl er carton $16 per stocking-hour Rick Flair , the controller of Figure Four, wants to use this ABC system to examine individual customer profitability within each distribution market. He focuses first on the Ma and Pa single-store distribution market. Two customers are used to exemplify the insights available with the ABC approach. Data pertaining to these two customers in August 2012 are as follows: Total orders Average line items per order Total store deliveries Avera cartons shipped per store deliv Avera hours of shelf-stockin r store deliv Avera revenue r deliv Average cost of goods sold per delivery Charleston Pharmacy 13 9 7 22 $2,400 $2,100 Chapel Hill Pharmacy 10 18 10 20 0.5 Sl ,SOO $1,650 2. Use the ABC information to compute the operating income of each customer in August 2012. Comment on the results and what, if anything, Flair should do. Flair ranks the individual customers in the Ma and Pa single-store distribution market based on monthly operating income. The cum ulative operating income of the top of customers is $55,680. Figure Four reports operating losses of $21 ,247 for the bottom of its customers. Make four recommendations that you think Figure Four should consider in light of this new custom er profitability information.