Subject Specific Skills (15 M) Time len 2 54.28 Q3-(15 Marks: 61:16) Master mind has only two retail and two wholesale customers. Information relating to each customer for 2021 follows (in thousands) Customers-wholesale Customer-Retail Manama whole salers Riffa whole salersoasis mall Seef mall $615,000 $200,000 $155,000 72200 33400 25590 535,000 169000 120,000 Revenues at list prices $400,000 discounts from list prices50,800 cost of goods sold 310,000 delivery cost 6550 order processing costs 5820 cost of sales visit 8300 8710 4230 4145 7980 4180 2130 4620 4620 2575 Master minds annual distribution channel costs are $35 million for wholesale customers and $14 million for retail customers. The company's annual corporate-sustaining costs, such as salary for top management and general- administration costs are $50million. There is no cause-and-effect or benefits-received relationship between any cost- allocation base and corporate-sustaining costs. That is, master mind could save corporate-sustaining costs only in the company completely shuts down. Required: 1. Calculate customer-level operating income (4M) 2. Prepare a customer-cost hierarchy report (7M) 3. Master mind management decides to allocate all corporate-sustaining costs to distribution channels: $40 million to the wholesale channel and $12 million to the retail channel. As a result, distribution channel costs are now $75 million ($35 million + $40 million) for the wholesale channel and $26 million 1514 million + $12 million) for the retail channel. Calculate the distribution-channel tevel operating income On the basis of these calculations, what actions, If any, should Master minds managers take? Explain (2M) 4. How might master mind use the new cost information from its activity-based costing system to better manage its business? (2 M)