Question: pls handwrite and explain LEARNING ACTIVITY 3 Veritek Wholesalers operates at capacity and sells furniture items to four department-store chains (customers). Mr. Veritek commented, We

pls handwrite and explain pls handwrite and explain LEARNING ACTIVITY 3 Veritek Wholesalers operates at capacity

LEARNING ACTIVITY 3 Veritek Wholesalers operates at capacity and sells furniture items to four department-store chains (customers). Mr. Veritek commented, "We apply ABC to determine product-line profitability. The same ideas apply to customer profitability, and we should find out our customer profitability as well." Veritek Wholesalers sends catalogs to corporate purchasing departments on a monthly basis. The customers are entitled to return unsold merchandise within a six-month period from the purchase date and receive a full purchase price refund. The following data were collected from last year's operations: 1 Customer 2 3 $20,000 $110,000 4 $40,000 95,000 96 24 Gross sales Sales returns Number of items Amount Number of orders: Regular Rush $ 8,000 64 $ 7,700 $ 3,000 32 $ 9,000 30 140 55 100 8 46 12 45 Veritek has calculated the following activity rates: Activity Regular order processing Rush order processing Returned items processing Catalogs and customer support Cost-Driver Rate $30 per regular order S150 per rush order S15 per item S1 200 per customer REQUIRED Customers pay the transportation costs. The cost of goods sold averages 75% of gross sales, Determine the contribution to profit from each customer last year. Comment on your solution

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