Each customer order consists of one or more line items. A line item represents a single product (such as
Extra-Strength Tylenol Tablets). Each product line item is delivered in one or more separate cartons.
Each store delivery entails the delivery of one or more cartons of products to a customer. Pharmacare’s
staff stacks cartons directly onto display shelves in customers’ stores. Currently, there is no additional
charge to the customer for shelf-stocking and not all customers use Pharmacare for this activity. The
level of each activity in the three market segments and the total cost incurred for each activity in 2011 is
as follows