= Homework: Chapter 15 Cost Allocation Question 3, E15-21 (similar to) Part 1 of 4 HW Score: 15.69%, 1.88 of 12 points Points: 0 of 2 Figure Four is a distributor of pharmaceutical products. Its ABC system has five activities: (Click the icon to view the activities.) Save Rick Flair, the controller of Figure Four, wants to use this ABC system to examine individual customer profitability within each distribution market. (Click the icon to view additional information.) Read the requirements. Requirement 1. Use the ABC information to compute the operating income of each customer in August 2020. Comment on the results and what, if anything, Flair should do. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for operating losses.) Revenues Cost of goods sold Gross margin Operating costs Operating income(loss) Boston Pharmacy Data table Activity Area 1. Order processing 2. Line-item ordering 3. Store deliveries 4. Carton deliveries 5. Shelf-stocking Cost Driver Rate in 2020 $42 per order $7 per line item $48 per store delivery $5 per carton $20 per stocking-hour Print Done - - More info He focuses first on the Ma and Pa single-store distribution market. Using only two customers helps highlight the insights available with the ABC approach. Data pertaining to these two customers in August 2020 are as follows: Total orders Average line items per order Total store deliveries Average cartons shipped per store delivery Boston Pharmacy Buffalo Pharmacy 11 13 12 25 16 13 18 23 Average hours of shelf-stocking per store delivery 0.50 0.75 Average revenue per delivery 2,550 $ 1,900 Average cost of goods sold per delivery 2,200 $ 1,650 Print Done