$14-19$ Customer profitability, customer$-$cost hierarchy. Enviro$-$Tech has only two retail and two whole. sale customers. Information relating to each customer for $2017$ follows $($in thousands$)$:Wholesale CustomersRetail CustomersNorth America WholesalerSouth America WholesalerGreen EnergyGlobal PowerRevenues at list prices$$375,000$$$590,000$$$175,000$$$130,000$Discounts from list prices$25,80047,2008,400590$Cost of goods sold$285,000510,000144,00095,000$Delivery costs$4,5506,7102,2302,145$Order processing costs$3,8205,9802,1801,130$Cost of sales visit$6,3002,6202,6201,575$Enviro$-$Tech's annual distribution$-$channel costs are $$33$ million for wholesale customers and $$12$ million for retail customers. The company's annual corporate$-$sustaining costs, such as salary for top management and general$-$administration costs are $$48$ million. There is no cause$-$and$-$effect or benefits$-$received rela$-$ tionship between any cost$-$allocation base and corporate$-$sustaining costs. That is$,$ Enviro$-$Tech could save corporate$-$sustaining costs only if the company completely shuts down$\mathrm{.}1.$ Calculate customer$-$level operating income using the format in Exhibit $14-3\mathrm{.}2.$ Prepare a customer$-$cost hierarchy report, using the format in Exhibit $14-6\mathrm{.}3.$ Enviro$-$Tech's management decides to allocate all corporate$-$sustaining costs to distribution chan$-$ nels: $$38$ million to the wholesale channel and $$10$ million to the retail channel. As a result, distribu$-$ tion channel costs are now $$71$ million $($$$33$ million $$38$ million$)$ for the wholesale channel and $$22$ million $($$$12$ million $$10$ million$)$ for the retail channel. Calculate the distribution$-$channel$-$level operating income. On the basis of these calculations, what actions, if any, should Enviro$-$Tech's manag$-$ ers take? Explain$\mathrm{.}4.$ How might Enviro$-$Tech use the new cost information from its activity$-$based costing system to better manage its business?