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please solve the question below thank you Hanson-Tech has only two retail and two wholesale customers. Information relating to each customer for 2017 foliows (in
please solve the question below
Hanson-Tech has only two retail and two wholesale customers. Information relating to each customer for 2017 foliows (in thousands) Click the icon to view the data) Hanson-Tech's annual distribution channel costs are $41 million for wholesale customers and 54 million for retail customers. The company's annual corporate-sustaining costs, such as salary for top management and general-administration costs, are 566 million. There is no cause-and-effect or benefits received relationship between any cost-allocation base and corporate-sustaining costs. That is, Hanson-Tech could save corporale sustaining costs only if the company completely shuts down. Read the requirements 20.000 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 Alt amounts in thousands of U.S. Dollars Wholesale Retail North America South America Green Global Wholesaler Wholesaler Energy Power Revenues at ist price 455.000 570,000 150,000 125.000 Price discounts 41.000 7.000 530 Revenues at actual prices 435.000 529.000 143.000 12440 Cost of goods sold 320.000 475.000 118.000 100.000 Gross margin 115,000 54.000 25,000 24470 Customer-level operating costs Delivery 480 670 240 135 Order processing 800 1.040 225 150 Sales visits 5.800 1.200 Total Cust-leveloper 7100 74510 2466 10 Customer-leveloper Data table Requirement 2. Pred 5.900 2000 X Wholesale Customers Retail Customers North America South America Green Global Wholesaler Wholesaler Energy Power $ 455,000 $ 570,000 $ 150,000 $125.000 20,000 41,000 7.000 530 320,000 475.000 118.000 100.000 480 670 240 135 800 1,040 225 150 5,900 5,800 2.000 1.200 Revenues at list prices Discounts from list prices Cost of goods sold Delivery costs Order processing costs Cost of sales visit Revenues at actual Customer-vel cos Customer.leveloper Distribution-channel Distribution channel Corporate-sustainin Print Done Operating income Hanson - 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) Hanson - Tech's annual distribution-channel costs are 541 million for wholesale customers and S4 million for retail customers. The company's annual corporate-sustaining costs, such as salary for top management and general-administration costs, are 566 million. There is no cause-and-effect or benefits-received relationship between any cost-allocation base and corporate-sustaining costs. That is. Hanson-Tech could save corporate-sustaining costs only if the company completely shuts down Read the requirements 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) All amounts in thousands of U.S. Dollars Wholesale Retail North America South America Green Global Wholesaler Wholesaler Energy Power Revenues at first price $ 455,000 570,000 150,000 125.000 Price discounts 20.000 41.000 7.000 530 Revenues at actual prices 435.000 529.000 143,000 124.470 Cost of goods sold 320.000 475,000 118,000 100.000 Gross margin 115,000 54,000 25.000 24,470 Customer-level operating costs Delivery 480 670 240 135 Order processing 800 1,040 225 150 Sales Visits 5.900 5,800 2.000 1.200 Total cust-level opp 7180 7510 2405 165 Customer level of - X Requirements Requirement 2. 1. Calculate customer-level operating income. 2. Prepare a customer-cost hierarchy report 3. Hanson - Tech's management decides to allocate all corporate-sustaining costs to distribution channels: $52 million to the wholesale channel and $14 million to the retail channel. As a result, distribution channel costs are now $93 million ($41 million $52 million) for the wholesale channel and $18 million (S4 million $14 million) for the retail channel. Calculate the distribution-channel-level operating income. On the basis of these calculations, what actions. if any, should Hanson - Tech's managers take? Explain. 4. How might Hanson-Tech use the new cost information from its activity-based costing system to better manage its business? Revenues at actu Customer-level Customer-level o Distribution-chand Distribution-chan Corporate-sustai Print Done Operating Income thank you
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