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Please help Leroux - Tech has only two retail and two wholesale customers. Information relating to each customer for 2017 follows (in thousands): (Click the
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Leroux - 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.) _eroux - Tech's annual distribution-channel costs are $34 million for wholesale customers and $7 million for retail customers. The company's annual corporate-sustaining costs, such as salary for top management and general-administration costs, are $64 million. There is no cause-and-effect or benefits-received relationship between any cost-allocation base and corporate-sustaining costs. That is, Leroux - Tech could save corporate-sustaining costs only if the company completely shuts down. Read the requirements. \begin{tabular}{lrrrrr} & \multicolumn{2}{c}{ Wholesale Customers } & \multicolumn{2}{c}{ Retail Customers } \\ \cline { 2 - 5 } & \multicolumn{2}{c}{ North America Wholesaler } & South America Wholesaler & \multicolumn{1}{c}{ Green Energy } & \multicolumn{1}{c}{ Global Power } \\ \hline Revenues at list prices & $ & 445,000 & 630,000$ & 140,000$ & 105,000 \\ Discounts from list prices & 30,000 & 39,000 & 7,600 & 550 \\ Cost of goods sold & 325,000 & 470,000 & 124,000 & 90,000 \\ Delivery costs & 460 & 610 & 210 & 115 \\ Order processing costs & 775 & 1,010 & 235 & 150 \\ Cost of sales visit & 5,400 & 5,200 & 2,600 & 1,400 \end{tabular} 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.) \begin{tabular}{l} \hline Price discounts \\ \hline Revenues at actual prices \\ \hline Cost of goods sold \\ Gross margin \\ Customer-level operating costs: \\ \hline Delivery \end{tabular} \begin{tabular}{l} \hline Sales visits \\ Total cust-level oper. costs \\ Customer-level operating income \end{tabular} Requirement 2. Prepare a customer-cost hierarchy report. (Enter amounts in thousands.) Customer Distribution Channels (all amounts in thousands of U.S. Dollars) \begin{tabular}{l} \hline Customer-level costs \\ Customer-level operating income \\ \hline Distribution-channel costs \\ \hline Distribution-channel-level oper. inc. \\ Corporate-sustaining costs \\ Operating income \end{tabular}Step by Step Solution
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