Score: 0 of 1 pt 1 of 2 (0 completo) | HW Score: 0%, 0 of 2 pt E14-19 (similar to) Question Help Orsack-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.) Orsack - Tech's annual distribution-channel costs are $40 million for wholesale customers and 58 million for retail customers. The company's annual corporate-sustaining costs, such as salary for top management and general-administration costs, are $70 million. There is no cause-and-effect or benefits-received relationship between any cost-allocation base and corporate-sustaining costs. That is, Orsack-Toch 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 Power Energy Choose from any list or enter any number in the input fields and then click Check Answer. e a Quiz W E RDE WORDS. Customers and 58 million for retail customers. The company's annu corporate-sustaining costs, such as salary for top management and general-administration costs, are $70 million. There is no cause-and-effect or b relationship between any cost-allocation base and corporate-sustaining costs. That is, Orsack-Tech could save corporate-sustaining costs only if completely shuts down. Read the requirements. Wholesale Retail North America South America Green Global Wholesaler Wholesaler Energy Power Gross margin Choose from any list or enter any number in the input fields and then click Check Answer parts remaining Clear All Check Ang Data Table Wholesale Customers North America South America Wholesaler Wholesaler $ 430,000 $ 600,000 $ 30,000 325,000 450.000 450 600 700 1,030 5,700 5,600 41,000 Revenues at list prices Discounts from list prices Cost of goods sold Delivery costs Order processing costs Cost of sales visit Retail Customers Green Global Energy Power 135,000 $ 115,000 7,200 460 121,000 230 115 165 2,000 84.000 1,400 1. Calculate customer-level operating income. 2. Prepare a customer-cost hierarchy report 3. Orsack - Tech's management decides to allocate all corporate-sustaining costs to distribution channels: $49 million to the wholesale channel and $21 million to the retail channel. As a result, distribution channel costs are now $89 million ($40 million + $49 million) for the wholesale channel and $29 million ($8 million + $21 million) for the retail channel. Calculate the distribution-channel-level operating income. On the basis of these calculations, what actions, if any, should Orsack - Tech's managers take? Explain. 4. How might Orsack - Tech use the new cost information from its activity-based costing system to better manage its business
