Requirement $3.$

Ramish minus TechRamish$$Tech$\text{'}$s

management decides to

allocate all corporate$-$sustaining costs to distribution channels

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$.$

Calculate the$$ distribution$-$channel$-$level operating income. On the basis of these$$ calculations, what$$ actions, if$$ any, should

Ramish minus TechRamish$$Tech$\text{'}$s

managers$$ take? Explain. $($Enter amounts in$$ thousands.$)$

If corporate costs are allocated to the channels, the retail channel will show an operating

$$

of

$$

$($in thousands$),$

and the wholesale channel will show an operating

$$

of

$$

$($in thousands$).$ The overall operating profit

$$

$.$