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Required: 1. Assign the other operating costs to the three distribution channels, using the ABC information. Compute the operating income for each distribution channel. Present
Required: 1. Assign the other operating costs to the three distribution channels, using the ABC information. Compute the operating income for each distribution channel. Present the resulting profit margin percentages. 2. What new insights are available from the ABC analysis? What explains the differences in profit margin % for the different distribution channels? 3. What decisions would you recommend to top management based on the ABC analysis? 4. Could this sort of analysis be applied to the evaluation of individual customer profitability? What additional information would you need
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