How do you calculate the distribution channel cost? 
ACC 439-H401 Cost Accounting 1 Homework: C 14 1 of 2 (1 complete) core: 0.52 of 1 pt E14-19 (similar to) Ramish-Tech has only two retail and two wholesale customers. Information relating to each customer for 2017 follows (in thousands): (Click the icon to view the data.) Ramish-Tech's annual distribution-channel costs are $38 million for wholesale customers and $10 million for retail customers. The conm costs, are $70 million. There is no cause-and-effect or benefits-received relationship between any cost-allocation base and corporate-su shuts down. Read the requirements. 50,120 1,225 $ 73,790 S 90,050 $ Customer-level operating income 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 1244790 978000 266790 536000 127300 442000 139490 1029605 814160 351950 Customer-level costs 462210 126075 215445 89370 90050 Customer-level operating income 215185 73790 163840 1225 51345 50120 Distribution-channel costs Distribution-channel-level oper. inc. Corporate-sustaining costs Operating income Choose from any list or enter any number in the input fields and then click Check Answer. 3 Darts remaining Clear All MacBook Air esc Requirements 1. Calculate customer-level operating income 2. Prepare a customer-cost hierarchy report. 3. Ramish -Tech's management decides to allocate all corporate-sustaining costs to distribution channels: $55 million to the wholesale channel and $15 million to the retail channel. As a result, distribution channel costs are now $93 million ($38 million +$55 million) for the wholesale channel and $25 million ($10 million +$15 million) for the retail channel. Calculate the distribution-channel-level operating income. On the basis of these calculations, what actions, if any should Ramish-Tech's managers take? Explain. 4. How might Ramish-Tech use the new cost information from its activity-based costing system to better manage its business? ACC 439-H401 Cost Accounting 1 Homework: C 14 1 of 2 (1 complete) core: 0.52 of 1 pt E14-19 (similar to) Ramish-Tech has only two retail and two wholesale customers. Information relating to each customer for 2017 follows (in thousands): (Click the icon to view the data.) Ramish-Tech's annual distribution-channel costs are $38 million for wholesale customers and $10 million for retail customers. The conm costs, are $70 million. There is no cause-and-effect or benefits-received relationship between any cost-allocation base and corporate-su shuts down. Read the requirements. 50,120 1,225 $ 73,790 S 90,050 $ Customer-level operating income 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 1244790 978000 266790 536000 127300 442000 139490 1029605 814160 351950 Customer-level costs 462210 126075 215445 89370 90050 Customer-level operating income 215185 73790 163840 1225 51345 50120 Distribution-channel costs Distribution-channel-level oper. inc. Corporate-sustaining costs Operating income Choose from any list or enter any number in the input fields and then click Check Answer. 3 Darts remaining Clear All MacBook Air esc Requirements 1. Calculate customer-level operating income 2. Prepare a customer-cost hierarchy report. 3. Ramish -Tech's management decides to allocate all corporate-sustaining costs to distribution channels: $55 million to the wholesale channel and $15 million to the retail channel. As a result, distribution channel costs are now $93 million ($38 million +$55 million) for the wholesale channel and $25 million ($10 million +$15 million) for the retail channel. Calculate the distribution-channel-level operating income. On the basis of these calculations, what actions, if any should Ramish-Tech's managers take? Explain. 4. How might Ramish-Tech use the new cost information from its activity-based costing system to better manage its business
