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please answer all requirements for a good rating! Hamish - Tech has onty two retail and two wholesale customers. Information relating to each customer for
please answer all requirements for a good rating!
Hamish - Tech has onty two retail and two wholesale customers. Information relating to each customer for 2017 follows (in thousands) IIA (Click the icon to view the data.) Hamish - Tech's annual distrioution-channel costs are 540 miltion for wholesale customers and 55 million for retail customers. The company's annual corporate-sustaining costs, such as salary for top management and general-administration costs, are $70 million There is no cause-and effect or benerits-received relationship between any cost-allocation base and corporate-sustaning costs. That is, Hamish-Tech could save corporate-sustaining costs only if the company completely shuts down Data tahlo 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.) Requirements 1. Calculate customer-level operating income. 2. Prepare a customer-cost hierarchy report. 3. Hamish - Tech's management decides to allocate all corporate-sustaining costs to distribution channels: $46 million to the wholesale channel and $24 million to the retail channel. As a result, distribution channel costs are now $86 million ( $40 million +$46 million) for the wholesale channel and $29 million ( $5 million +$24 million) for the retail channel. Calculate the distribution-channel-level operating income. On the basis of these calculations, what actions, if any, should Hamish - Tech's managers take? Explain. 4. How might Hamish - Tech use the new cost information from its activity-based costing system to better manage its business Step by Step Solution
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