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The issue presented in the question is that advice that is required for the particular way in which the customer A and customer B should be approached has been asked. In order to determine the proper approach that should be utilized while reaching out to the particular customers A and B, the particulars of the Activity Based Costing has to be determined. This means that the activities have to be segregated on the basis of total cost per activity. Next, the cost drivers have been allocated to the different activities. The activity of storage has been allocated with the cost driver of cartons in inventories. The activity of requisition handling has been allocated with the cost driver of requisitions. Moreover, the activity of basic warehouse stock selection has been allocated on the basis of carton lines. It can be naturally assumed that the pick pack activity has been allocated on the basis of pick pack lines. Next, the activity of data entry has been allocated on the basis of number of cartons and the delivery of the desktops is allocated on the basis of orders. The service costs further have been calculated by dividing the total cost per activity by the driver-planned capacity.

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