Save & Exit Submit Check my work 4 Exercise 7-10 (Algo) Customer Profitability Analysis (L07-3, LO7-4, LO7-5) 10 points Book Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies For years, Worley believed that the 8% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown: Hint Print References Activity Cont Pool Activity Measure) Customer deliveries (Number of deliveries) Manual order processing Number of manual orders) Electronie order processing Number of electronic orders) Line Item picking (umber of line items picked) Other organization-sustaining costs (Bone) Total selling and administrative expenses Total cont Total activity $415,000 5,000 deliveries 684,000 9.000 orders 221,000 13,000 orders 758,500 410,000 line items 670.000 $2.748,500 Worley gathered the data below for two of the many hospitals that it serves - University and Memorial (each hospital purchased medical supplies that had cost Worley $37,000 to buy from manufacturers): Activity Measure Number of deliveries Number of manual orders Number of electronic orders Activity University Memorial 12 27 0 47 12 0 Top Gainers-St... FINVIZ.com - Stoc Homework - Chapter 76 Saved Help Save & Exit Subr 4 Check my work woney gatnerea the data below for two or the many nospitais inat it serves--universay ana memonal teacn nospitai purenas medical supplies that had cost Worley $37,000 to buy from manufacturers): 10 points Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Activity University Memorial 12 27 0 47 12 0 120 280 eBook Hint Print Required: 1. Compute the total revenue that Worley would receive from University and Memorial 2. Compute the activity rate for each activity cost pool. 3. Compute the total activity costs that would be assigned to University and Memorial 4. Compute Worley's customer margin for University and Memorial. (Hint Do not overlook the $37,000 cost of goods sold tha Worley incurred serving each hospital.) References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the total activity costs that would be assigned to University and Memorial Total Activity Costs University Memorial 4 Check my work woney garnerea une gata Delow for two of the many nospitais that it serves-university and memorial (each nospital purchasea medical supplies that had cost Worley $37,000 to buy from manufacturers): pints Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line itens picked Activity University Memorial 12 27 0 42 12 0 120 280 eBook Hint Print Required: 1. Compute the total revenue that Worley would receive from University and Memorial. 2. Compute the activity rate for each activity cost pool 3. Compute the total activity costs that would be assigned to University and Memorial 4. Compute Worley's customer margin for University and Memorial. (Hint Do not overlook the $37,000 cost of goods sold that Worley incurred serving each hospital.) references Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Regulied 4 Compute Worley's customer margin for University and Memorial. (Hint: Do not overlook the $37,000 cost of goods sold that Worley incurred serving each hospital.) (Loss amounts should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number.) Customer Margin University Prir 17