HansonTech has only two retail and two wholesale customers. Information relating to each customer for 2017 follows (in thousands):

Hanson Tech''s annual distribution-channel costs are $42 million for wholesale customers and $10 million for retail customers. Thecompany's annual corporate-sustaining costs, such as salary for top management and general-administration costs, are $61 million. There is no cause-and-effect or benefits-received relationship between any cost-allocation base and corporate-sustaining costs. That is, HansonTech could save corporate-sustaining costs only if the company completely shuts down.

Requirement 1. Calculate customer-level operating income. - Data Table Begin by calculating each customer's gross margin. Then calculate the operating income for each customer. (Enter amounts in thousands.) All amounts in thousands of U.S. Dollars Wholesale Retail Wholesale Customers North America South America Wholesaler Wholesaler Retail Customers Green Global Energy Power North America South America Green Global Wholesaler Wholesaler Energy Power $ 425,000 $ 560,000 $ 135,000 $ 85,000 Revenues at list price $ 425,000 560,000 85,000 135,000 7,800 25,000 42,000 7,800 490 Price discounts 25,000 42,000 490 345,000 465,000 121,000 82,000 Revenues at actual prices 400,000 518,000 127,200 84,510 Revenues at list prices Discounts from list prices Cost of goods sold Delivery costs Order processing costs Cost of sales visit 440 600 160 145 Cost of goods sold 345,000 465,000 121,000 82,000 800 1,020 175 140 55,000 53,000 6,200 2,510 5,900 5,200 1,900 1,150 Gross margin Customer-level operating costs: 440 600 160 145 Delivery Order processing 800 1,020 175 140 Print Done Sales visits 5,900 5,200 1,900 1,150 Total cust-level oper. costs 7,140 6,820 2,235 1,435 $ 47,860 $ 46,180 $ 3,965 $ 1,075 Customer-level operating income Requirement 2. Prepare a customer-cost hierarchy report. (Enter amounts in thousands.) Requirement 2. Prepare a customer-cost hierarchy report. (Enter amounts in thousands.) Customer Distribution Channels (all amounts in thousands of U.S. Dollars) Wholesale Customers Retail Customers Total N. America S. America Total Green Global Total Wholesale Wholesaler Wholesaler Retail Energy Power Revenues at actual prices Customer-level costs Customer-level operating income Distribution-channel costs Distribution-channel-level oper. inc. Corporate-sustaining costs Operating income