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Dakota Office Products has just suffered its first loss despite introducing automated ordering capabilities that should have lowered its operating costs. The case reveals how the firm's traditional pricing scheme is no longer adequate as the firm introduces enhanced service features such as desktop delivery. The case contains enough variety and complexity at the customer order level to provide a general idea how two customers of similar size can make very different demands on the firm. The student assigned to present the Dakota Office Products case will: 1. Review the case to document the firm's resources and costs (costs identified in Exhibit 1 in the case): a. freight, b. warehouse rent and depreciation, c. warehouse distribution personnel, d. delivery truck expenses, and e. order entry expenses, 2. Also identify the activities that require these resources: a. ship cartons, b. process cartons, c. deliver to desktop. d. process manual custom order, e, enter items ordered (manual), and f. process EDI order (see top of page 3 for processing volumes). 3. Prepare an Activity Based Cost System diagram for year 2000 and calculate the activity cost-driver rate for each activity in year 2000 . 4. Prepore a customer profitability statement for customers A\&B. The student will prepare a written analysis of at least 300 words, citing external sources as appropriate

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