otal Wholesale Wholesaler Wholesaler Retail Energy Power Revenues at actual prices $1,194,940 ...

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Accounting

otal
Wholesale
Wholesaler
Wholesaler
Retail
Energy
Power
Revenues at actual prices
$1,194,940
$933,000
$385,000
$548,000
$261,940
$147,400
$114,540
Customer-level costs
1,028,410
813,445
326,785
486,660
214,965
121,130
93,835
Customer-level operating income
166,530
119,555
$58,215
$61,340
46,975
$26,270
$20,705
Distribution-channel costs
45,000
39,000
6,000
Distribution-channel-level oper. inc.
121,530
$80,555
$40,975
Corporate-sustaining costs
63,000
Operating income
$58,530
Part 4
Requirement 3. Burtman minus Tech's management decides to allocate all corporate-sustaining costs to distribution channelsLOADING.... Calculate the distribution-channel-level operating income. On the basis of these calculations, what actions, if any, should Burtman minus Tech's managers take? Explain. (Enter amounts in thousands.)
If corporate costs are allocated to the channels, the retail channel will show an operating
profit
of
(in thousands),
and the wholesale channel will show an operating
profit
of
(in thousands). The overall operating profit
will not change from the amount in requirement 2
.

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