Onack-Tech has only the retail and two wholesale cutomer. Information relating to each customer for 2020 flow in thousands IT (Click the icon to view the data) Orack-Tech's wrbuton channel costs are $30 million for wholesale customers and milion for real customers. The company's presing costs, such as for partner costs, we milion. There is no use-and-effect or benefits received relationship between any location base and corporatining cous. This Orack-Tech could corporate with company completely shut down Read the Requirement 1. Cucute customer developerating income Begin by calculating each customer's grous margin. Then calculate the operating income for each customer Enter mountain the All amounts in thousands of U.S. Dollars Wholesale Retail North America South America Green Global Wholesaler Wholesaler Energy Power Groos margin 3. Information relating to each customer for 2020 follows (in thousands): on for wholesale customers and $6 million for retail customers. The company's annual corporate-sustaining costs, such a -received relationship between any cost-allocation base and corporate-sustaining costs. That is. Orsack - Tech could say 0 Data Table ala he Revenues at list prices Discounts from list prices Cost of goods sold Delivery costs Order processing costs Cost of sales visit Wholesale Customers North America South America Wholesaler Wholesaler $ 440,000 $ 620,000 $ 40,000 39,000 320,000 480,000 475 650 900 1,050 5,800 5,500 Retail Customers Green Global Energy Power 165,000 $ 110,000 7,900 540 116.000 88,000 200 135 195 160 2,200 1,500 Done and then click Check Answer stomers. Information relating to each customer for 2020 follows (in thousands): 39 million for wholesale customers and $6 million for retail customers. The company's annual corporate-sustaining costs, suc enefits-received relationship between any cost-allocation base and corporate-sustaining costs. That is, Orsack - Tech could i Requirements ome. en calc Amerid lesaler 1. Calculate customer-level operating income. 2. Prepare a customer-cost hierarchy report. 3. Orsack - Tech's management decides to allocate all corporate-sustaining costs to distribution channels: $49 million to the wholesale channel and $19 million to the retail channel. As a result, distribution channel costs are now $88 million ($39 million + $49 million) for the wholesale channel and $25 million ($6 million + $19 million) for the retail channel. Calculate the distribution-channel-level operating income. On the basis of these calculations, what actions, if any, should Orsack - Tech's managers take? Explain. 4. How might Orsack - Tech use the new cost information from its activity-based costing system to better manage its business? Print Done ut fields and then click Check
