Enviro - Tech has only two retail and two wholesale customers. Information relating E (Click to view the information.) More information Requirements 1. Calculate customer-level operating income. 2. Prepare a customer-cost hierarchy report. 3. Enviro - Tech's management decides to allocate all corporate-sustaining cost if any, should Enviro - Tech's managers take? Explain. 4. How might Enviro - Tech use the new cost information from its activity-based $38 million to the wholesale channel and $10 million to the retail channel. As a result, distribution channel costs are now $71 million ($33 million + $38 million) for the wholesale channel and $22 million ($12 million + $10 million) for the retail channel. calculations, what action Print 48,000 Done Corporate-sustaining costs $ 19,150 Operating income Requirement 3. Calculate the distribution-channel-level operating income. (Enter amounts in thousands.) and the wholesale channel will show an operating loss (in thousands) of $. The overall If corporate costs are allocated to the channels, the retail channel will show an operating profit (in thousands) of $| operating profit will increase from the amount in Requirement 2 Requirements 1. Calculate customer-level operating income. 2. Prepare a customer-cost hierarchy report. 3. Enviro Tech's management decides to allocate all corporate-sustaining costs to distribution channels. Calculate the distribution-channel-level operating income. On the basis of these calculations, what actions, if any, should Enviro - Tech's managers take? Explain. 4. How might Enviro - Tech use the new cost information from its activity-based costing system to better manage its business? Total N. America S. America Total Green Global Revenues at actual prices Total Wholesale Wholesaler Wholesaler Retail Energy Power $ 1,188,010 $ 892,000 $ 349,200 $ 542,800 $ 296,010 $ 166,600 $ 129,410 1,075,860 824,980 299,670 525,310 250,880 151,030 99,850 Customer-level costs $ 112,150 67,020 49,530 $ 17,490 Customer-level operating income $ 15,570 $ 29,560 45,130 Distribution-channel costs 45,000 33,000 12,000 34,020 $ 33,130 Distribution-channel-level oper. inc. 67,150 Corporate-sustaining costs 48,000 $ 19,150 Operating income Requirement 3. Calculate the distribution-channel-level operating income. (Enter amounts in thousands.) and the wholesale channel will show an operating loss (in thousands) of $ The overall operating profit If corporate costs are allocated to the channels, the retail channel will show an operating profit (in thousands) of $ will increase from the amount in Requirement 2 Enviro - Tech has only two retail and two wholesale customers. Information relating E (Click to view the information.) More information Requirements 1. Calculate customer-level operating income. 2. Prepare a customer-cost hierarchy report. 3. Enviro - Tech's management decides to allocate all corporate-sustaining cost if any, should Enviro - Tech's managers take? Explain. 4. How might Enviro - Tech use the new cost information from its activity-based $38 million to the wholesale channel and $10 million to the retail channel. As a result, distribution channel costs are now $71 million ($33 million + $38 million) for the wholesale channel and $22 million ($12 million + $10 million) for the retail channel. calculations, what action Print 48,000 Done Corporate-sustaining costs $ 19,150 Operating income Requirement 3. Calculate the distribution-channel-level operating income. (Enter amounts in thousands.) and the wholesale channel will show an operating loss (in thousands) of $. The overall If corporate costs are allocated to the channels, the retail channel will show an operating profit (in thousands) of $| operating profit will increase from the amount in Requirement 2 Requirements 1. Calculate customer-level operating income. 2. Prepare a customer-cost hierarchy report. 3. Enviro Tech's management decides to allocate all corporate-sustaining costs to distribution channels. Calculate the distribution-channel-level operating income. On the basis of these calculations, what actions, if any, should Enviro - Tech's managers take? Explain. 4. How might Enviro - Tech use the new cost information from its activity-based costing system to better manage its business? Total N. America S. America Total Green Global Revenues at actual prices Total Wholesale Wholesaler Wholesaler Retail Energy Power $ 1,188,010 $ 892,000 $ 349,200 $ 542,800 $ 296,010 $ 166,600 $ 129,410 1,075,860 824,980 299,670 525,310 250,880 151,030 99,850 Customer-level costs $ 112,150 67,020 49,530 $ 17,490 Customer-level operating income $ 15,570 $ 29,560 45,130 Distribution-channel costs 45,000 33,000 12,000 34,020 $ 33,130 Distribution-channel-level oper. inc. 67,150 Corporate-sustaining costs 48,000 $ 19,150 Operating income Requirement 3. Calculate the distribution-channel-level operating income. (Enter amounts in thousands.) and the wholesale channel will show an operating loss (in thousands) of $ The overall operating profit If corporate costs are allocated to the channels, the retail channel will show an operating profit (in thousands) of $ will increase from the amount in Requirement 2
