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please do all the requirements Burtman - Toch has only two retail and two wholesale customers. Information relating to each customer for 2020 follows (in
please do all the requirements
Burtman - Toch has only two retail and two wholesale customers. Information relating to each customer for 2020 follows (in thousands): (Cick the icon to view the data.) Burtman - Techis annual distibution-channel costs are $40 millon for wholesale customers and $6 mitlicn for retail customers. The companys annual corporase-sustainirg costs, auch as salacy for top management and general-administration costs, are $69 million. There is no cause-and-effect or benefits-received relationship between any cost-allocation base and corporate-sustaining costr. That is, Burtman - Tech could seve corporato-sustairing costs only if the company completely shuts down. Read the requirements. Requirement 1, Calculase customer-lovel operating income. Begin by calculating each customers gross margin. Then calculate the operating income for each customer. (Enter amounts in thousands.) Burtman - Tech has only two retall and two wholesale customers. Information relating to each customer for 2020 follows (in thousands): (Click the icon to view the data.) Data Tablo Ch's annual distribution-channel costs are $40 million for wholesale customers and $6 million for retail customers. The company's annual corporate-5 That is, Burtm Read the requ Data table urtman - 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.) turtman - Tech's annual distribution-channel costs are $40 million for wholesale customers and $6 million for retall customers. The company's ann op management and general-administration costs, are $69 million. There is no cause-and-effect or benefits-received relationship between any cost hat is, Bur Read the re Requirements 1. Calculate customer-level operating income. 2. Prepare a customer-cost hierarchy report. 3. Burtman - Tech's management decides to allocate all corporate-sustaining costs to distribution channels: $52 million to the wholesale channel and $17 million to the retail channel. As a result, distribution channel costs are now $92 million ( $40 million +$52 million) for the wholesale channel and $23 million ( $6 million +$17 million) for the retail channel. Calculate the distribution-channel-level operating income. On the basis of these calculations, what actions, if any, should Burtman - Tech's managers take? Explain. 4. How might Burtman - 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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