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= Homework: Chapter 15 Cost Allocation Question 2, E15-19 (similar to) > Part 1 of 6 HW Score: 15.69%, 1.88 of 12 points Points: 0
= Homework: Chapter 15 Cost Allocation Question 2, E15-19 (similar to) > Part 1 of 6 HW Score: 15.69%, 1.88 of 12 points Points: 0 of 1 Save Ramish-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.) Ramish-Tech's annual distribution-channel costs are $35 million for wholesale customers and $6 million for retail customers. The company's annual corporate-sustaining costs, such as salary for top management and general-administration costs, are $68 million. There is no cause-and-effect or benefits-received relationship between any cost-allocation base and corporate-sustaining costs. That is, Ramish-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.) Gross margin All amounts in thousands of U.S. Dollars Wholesale Retail North America South America Green Wholesaler Wholesaler Energy Global Power Data table - Wholesale Customers Retail Customers North America Wholesaler South America Wholesaler Green Global Energy Power Revenues at list prices 450,000 $ 620,000 $ 150,000 $ 85,000 Discounts from list prices 40,000 42,000 7,400 520 Cost of goods sold 355,000 480,000 124,000 82,000 Delivery costs 500 680 240 125 Order processing costs 825 1,040 205 145 Cost of sales visit 5,900 5,300 2,700 1,100 Print Done
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