with the above data, answer these questions: $1.$ Discuss Carolina Creations$$ practice of setting selling prices by applying a standard

markup to the cost of goods sold.

a$.$ When is it appropriate to apply different markups to different customers or

purchases? $(5$ points$)$

$2.$ The reason for identifying the operating expenses with customers was not clear to Edward

and Robin. What is the rationale for this practice? $(5$ points$)$

$3.$ What issues should Daniel and Robin consider when determining how to identify the

operating expenses with customers? What additional information would be useful in

making the identifications? $(5$ points$)$

$4.$ Can any of the operating expenses be directly related to individual customers in whole or in

part, and why should that be done?

a$.$ Are there any operating expenses that should not be allocated to customers but

should be treated as common costs instead? $(5$ points$)$

$5.$ What cost drivers would you recommend for each of the customer$-$servicing activities

Robin identified, and why would each be appropriate? $(5$ points$)$

$6.$ Use the information provided in the Excel file to calculate driver rates and allocate the

operating expenses to customers. $(10$ points$)$

$7.$ Prepare common$-$size financial statements for the three customers. What do they reveal?

Common$-$size financial statements are statements express in percentages of dollars. The

amounts on a common$-$size income statement are express as a percentage of sales. $(5$

points$)$

$8.$ Create ratios that you believe would help evaluate customers, describe your reasoning

behind the ratios, and indicate what insights they provide about the customers. $(5$ points$)$

$9.$ What actions would you recommend Carolina Creations$$ Marketing department take with

respect to each of the customers? $(5$ points$)$