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QUESTION 1 6 points Save Answer Bigdog Company distributes pet products. Its ABC system has five activities: Activity Area 1. Order processing 2. Line-item ordering Cost Driver Rate in 2020 $50 per order $5 per line item 3. Store deliveries 4. Carton deliveries $40 per store delivery $6 per carton $19 per stocking hour 5. Shelf-stocking Rufus McBrain, the controller of Bigdog Company, wants to use this ABC system to examine customer profitability. He focuses on two of his customers to find out the insights he can gain from using this system. Data for these two customers in April 2020 are as follows: RSPCA store Springwood 7 Pet Store Annerley 13 11 5 21 19 7 18 Total orders Average line items per order Total store deliveries Average cartons shipped per store delivery Average hours of shelf stocking per store delivery Average revenue per delivery Average cost of goods sold per delivery 0.5 0.75 $2,600 $2,100 $1,900 $1,700 1. Use the ABC information to compute the operating income for each customer in April 2020. (4 marks) 2. Comment on the results from ABC analysis. (1 mark) 3. Make two recommendations that you think Bigdog should consider in light of this new customer-profitability information using ABC. (1 mark) (Word limit: 100 words) (use your own words, copy and paste from learning resources will attract O marks)