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has only two retail and two wholesale customers. Information relating to each customer for follows (in thousands): LOADING...(Click the icon to view the data.) 's annual distribution-channel costs are million for wholesale customers and million for retail customers. The company's annual corporate-sustaining costs, such as salary for top management and general-administration costs, are million. There is no cause-and-effect or benefits-received relationship between any cost-allocation base and corporate-sustaining costs. That is, could save corporate-sustaining costs only if the company completely shuts down.Wholesale Customers Retail Customers North America Wholesaler South America Wholesaler Green Energy Global Power Revenues at list prices $450,000 $630,000 $165,000 $100,000 Discounts from list prices 37,000 40,000 7,800 520 Cost of goods sold 325,000 460,000 123,000 92,000 Delivery costs 400 670 230 125 Order processing costs 850 1,040 215 120 Cost of sales visit 5,600 5,100 2,300 1,500 pop-up content ends . Prepare a customer-cost hierarchy report. 3. 's management decides to allocate all corporate-sustaining costs to distribution channels: million to the wholesale channel and million to the retail channel. As a result, distribution channel costs are now million ( million + million) for the wholesale channel and million ( million + million) for the retail channel. Calculate the distribution-channel-level operating income. On the basis of these calculations, what actions, if any, should 's managers take? Explain. 4. How might use the new cost information from its activity-based costing system to better manage its business?

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