More info He focuses first on the Ma and Pa single-store distribution market. Using only two customers helps highlight the insights available with the ABC approach. Data pertaining to these two customers in August 2020 are as follows: 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 $ $ Albany Pharmacy 11 6 7 23 0.25 2,400 $ 2,100 $ Dallas Pharmacy - 12 21 11 22 0.50 1,800 1,550 Data table Activity Area 1. Order processing 2. Line-item ordering 3. Store deliveries 4. Carton deliveries 5. Shelf-stocking Print Cost Driver Rate in 2020 $44 per order $2 per line item $50 per store delivery $5 per carton $12 per stocking-hour Done

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Requirement 1. Use the ABC information to compute the operating income of each customer in August 2020. Comment on the results and what, if anything, Flair should do. (Round your answers to the nearest whole dollar. Use
parentheses or a minus sign for operating losses.)
Revenues
Cost of goods sold
Gross margin
Operating costs
Operating income(loss)
Albany
Pharmacy
Transcribed Image Text:Requirement 1. Use the ABC information to compute the operating income of each customer in August 2020. Comment on the results and what, if anything, Flair should do. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for operating losses.) Revenues Cost of goods sold Gross margin Operating costs Operating income(loss) Albany Pharmacy
More info
He focuses first on the Ma and Pa single-store distribution market. Using only two customers helps
highlight the insights available with the ABC approach. Data pertaining to these two customers in August
2020 are as follows:
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
EA EA
Albany Pharmacy
11
6
7
23
0.25
2,400 $
2,100 $
Dallas Pharmacy
12
21
11
22
0.50
1,800
1,550
Data table
Activity Area
1. Order processing
2. Line-item ordering
3. Store deliveries
4. Carton deliveries
5. Shelf-stocking
Print
Cost Driver Rate in 2020
$44 per order
$2 per line item
$50 per store delivery
$5 per carton
$12 per stocking-hour
Done
I
X
Transcribed Image Text:More info He focuses first on the Ma and Pa single-store distribution market. Using only two customers helps highlight the insights available with the ABC approach. Data pertaining to these two customers in August 2020 are as follows: 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 EA EA Albany Pharmacy 11 6 7 23 0.25 2,400 $ 2,100 $ Dallas Pharmacy 12 21 11 22 0.50 1,800 1,550 Data table Activity Area 1. Order processing 2. Line-item ordering 3. Store deliveries 4. Carton deliveries 5. Shelf-stocking Print Cost Driver Rate in 2020 $44 per order $2 per line item $50 per store delivery $5 per carton $12 per stocking-hour Done I X
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