Burtman - Tech has only two retail and two wholesale customers. Information relating to each customer for 2020 follows (in thousands): (Click the icon to view the data.) Burtman - Tech's annual distribution-channel costs are $35 million for wholesale customers and $8 million for retail customers. The company's annual corporate-sustaining costs, such as salary for top management and general-administration costs, are $63 million. There is no cause-and-effect or benefits-received relationship between any cost-allocation base and corporate-sustaining costs. That is, Burtman - Tech could save corporate-sustaining costs only if the company completely shuts down. Read the requirements. Requirement 1. Calculate customer-level operating income. Begin by calculating each customer's gross margin. Then calculate the operating income for each customer. (Enter amounts in thousands.) Data table Requirements 1. Calculate customer-level operating income. 2. Prepare a customer-cost hierarchy report. 3. Burtman - Tech's management decides to allocate all corporate-sustaining costs to distribution channels: $49 million to the wholesale channel and $14 million to the retail channel. As a result, distribution channel costs are now $84 million ( $35 million + $49 million) for the wholesale channel and $22 million ( $8 million + $14 million) for the retail channel. Calculate the distribution-channel-level operating income. On the basis of these calculations, what actions, if any, should Burtman - Tech's managers take? Explain. 4. How might Burtman - Tech use the new cost information from its activity-based costing system to better manage its business