Questions $($to guide your analysis$)$

$1.$ Using the information in the text calculate "ABC"$-$based services costs for the PFS business.

$2.$ Using your new costing system, calculate distribution services costs for "Customer A$"$ and "Customer B$."$

$3.$ What inference do you draw about the profitability of these two customers?

$4.$ Should PFS implement the SBP pricing system?

$5.$ What managerial advice do you have for Commercial Paper Co$.$ about the Personalized Forms Services $($PFS$)$ business? How does Exhibit I relate to this question?