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Please try and figure out all requirements, thank you! Hanson - Tech has only two retail and two wholesale customers. Information relating to each customer
Please try and figure out all requirements, thank you!
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.) corporate-sustaining costs only if the company completely shuts down. Read the 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.) Data table Requirements 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: $55 million to the wholesale channel and $13 million to the retail channel. As a result, distribution channel costs are now $92 million ( $37 million +$55 million) for the wholesale channel and $21 million ( $8 million +$13 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 businessStep by Step Solution
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