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Ramish Electronics has only two retail and two wholesale customers. Information relating to each customer for the year follows (in thousands): (Click the icon to
Ramish Electronics has only two retail and two wholesale customers. Information relating to each customer for the year follows (in thousands): (Click the icon to view the information.) sustaining costs could be saved only if Ramish Electronics were to completely shut down. Required Requirement 1. Calculate customer-level operating income. a minus sign for an operating loss.) Information Required 1. Calculate customer-level operating income. 2. Prepare a customer-cost hierarchy report. 3. Ramish's management decides to allocate all corporate-sustaining costs to distribution channels. Calculate the distribution-channel-level operating income. On the basis of these calculations, what actions, if any, should Ramish's managers take? Explain. More information $54 million to the wholesale channel and $9 million to the retail channel. As a result, distribution-channel costs are now $94 million (\$40 million +$54 million) for the wholesale channel and \$15 million (\$6 million + \$9 million) for the retail channel
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