=+3 Omega Electronicss management decides to allocate all organisation-sustaining costs to distribution channels: $51 million to the

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=+3 Omega Electronics’s management decides to allocate all organisation-sustaining costs to distribution channels: $51 million to the wholesale channel and $14 million to the retail channel. As a result, distribution-channel costs are now $89 million ($38 million +

$51 million) for the wholesale channel and $21 million ($7 million + $14 million) for the retail channel. Calculate the distributionchannel-level operating profit. On the basis of these calculations, what actions, if any, should Omega Electronics’s managers take? Explain.

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Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

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