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please help do all the requirements! Ossen - Tech has only two retall and two wholesale cusiomors. Information relating to oach customer for 2020 follows
please help do all the requirements!
Ossen - Tech has only two retall and two wholesale cusiomors. Information relating to oach customer for 2020 follows (in thousands): (Click the icon to view the data.) Ossen-Tech's annual distribution-channel costs are $39 million for wholesale customers and $5 milion for retall customers. The company's annual corporato sustaring costs, such as salary for top management and general-administration costs, are $67 million. There is no causo-and-effect or benefits-received relationship between any cost-allocation base and corporito-6ustaining costs That is, Ossen - Tech could save corporate-sustaining costs cnly if the company complectely shuts down. Read the reguirements. Requirement 1. Calculate customer-lovel operating income. Begin by caiculating each customer's gross margin. Then calculate the operating income for each customer, (Enter amounts in thousands. (Click the icon to view the data.) In - Tarhis annual distribution-channel costs are $39 million for wholesale customers and $5 million for retail customers. The company's annuai corporato-suste - Techeral-administration costs, are $67 million. There is no cause-and-effect or benefits-recelved relationsh corporate-sustaining between any cost-allocation base and Dat is, Ossen - Tech could save corporate Gross margin Get more help . 3 sen - Tech's annual distribution-channel costs are $39 million for wholesale customers and $5 million for retail customers. The compa anagement and general-administration costs, are $67 million. There is no cause-and-effect or benefits-recelved relationship between a nat is, Ossen - Tech could save corporate-sustaining costs only if the company completely shuts down. Requirements 1. Calculate customer-level operating income. 2. Prepare a customer-cost hierarchy report. 3. Ossen-Tech's management decides to allocate all corporate-sustaining costs to distribution channels: $51 million to the wholesale channel and $16 million to the retail channel. As a result, distribution channel costs are now $90 million ( $39 million +$51 million) for the wholesale channel and $21 million ($5 million +$16 million) for the retail channel. Calculate the distribution-channel-level operating income. On the basis of these calculations, what actions, if any, should Ossen - Tech's managers take? Explain. 4. How might Ossen - Tech use the new cost information from its activity-based costing system to better manage its business? Ossen - Tech has only two retall and two wholesale cusiomors. Information relating to oach customer for 2020 follows (in thousands): (Click the icon to view the data.) Ossen-Tech's annual distribution-channel costs are $39 million for wholesale customers and $5 milion for retall customers. The company's annual corporato sustaring costs, such as salary for top management and general-administration costs, are $67 million. There is no causo-and-effect or benefits-received relationship between any cost-allocation base and corporito-6ustaining costs That is, Ossen - Tech could save corporate-sustaining costs cnly if the company complectely shuts down. Read the reguirements. Requirement 1. Calculate customer-lovel operating income. Begin by caiculating each customer's gross margin. Then calculate the operating income for each customer, (Enter amounts in thousands. (Click the icon to view the data.) In - Tarhis annual distribution-channel costs are $39 million for wholesale customers and $5 million for retail customers. The company's annuai corporato-suste - Techeral-administration costs, are $67 million. There is no cause-and-effect or benefits-recelved relationsh corporate-sustaining between any cost-allocation base and Dat is, Ossen - Tech could save corporate Gross margin Get more help . 3 sen - Tech's annual distribution-channel costs are $39 million for wholesale customers and $5 million for retail customers. The compa anagement and general-administration costs, are $67 million. There is no cause-and-effect or benefits-recelved relationship between a nat is, Ossen - Tech could save corporate-sustaining costs only if the company completely shuts down. Requirements 1. Calculate customer-level operating income. 2. Prepare a customer-cost hierarchy report. 3. Ossen-Tech's management decides to allocate all corporate-sustaining costs to distribution channels: $51 million to the wholesale channel and $16 million to the retail channel. As a result, distribution channel costs are now $90 million ( $39 million +$51 million) for the wholesale channel and $21 million ($5 million +$16 million) for the retail channel. Calculate the distribution-channel-level operating income. On the basis of these calculations, what actions, if any, should Ossen - Tech's managers take? Explain. 4. How might Ossen - 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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