Orsack $-$ Tech has only two retail and two wholesale customers. Information relating to each customer for $2020$ follows $($in thousands$)$:

Read the cequirements.

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.$)$

Requirement $2.$ Prepare a customer$-$cost hierarchy report. $($Enter amounts in thousands.$)$

Customer Distribution Channels

$($all amounts in thousands of U$.$S$.$ Dollars$)$

Wholesale Customers Retail Customers

$\backslash$table$[[$Wholesale Customers,Retail Customers$],[$Total N$.$ America S$.$ America Total Green Global,,,,,$],[$Wholesale Wholesaler Wholesaler Retail Energy Power,,,,,$]]$

Requirement $3.$ Orsack $-$ Tech's management decides to managers take? Explain. $($Enter amounts in thousands$)$

If corporate costs are allocated to the channels, the retall channel will show an operating $($in thousands$).$

and the wholesale channel will show an operating $($in thousands$).$ The overall operating profit

On the basis of the calculations above, what actions, if any, should Orsack $-$ Tech's managers take? Explain. decisions based on these channel$-$level operating income numbers.

Requirement $4.$ How might Orsack $-$ Tech use the new cost information from its activity$-$based costing system to better manage its business?

Orsack $-$ Tech could use activity$-$based cost information to better manage its business by and determining which activities are

visits for the North America Wholesaler are $$5,900,$ which is greater than the cost for the South America Wholesaler. Orsack$-$Tech should evaluate the

of this activity for this customer group.

If costs of si