All amounts in thousands of U.S.

dollars
Wholesale Retail
West Region East Region Hudson Pentel
Wholesaler Wholesaler Inc. Corp.
Revenues at list prices $750,000 $1,180,000 $350,000 $260,000
Price discounts 51,600 79,200 19,800 6,180
Revenues (at actual prices) 698,400 1,100,800 330,200 253,820
Cost of goods sold 570,000 1,020,000 298,000 190,000
Gross margin 128,400 80,800 32,200 63,820
Customer-level operating costs
Delivery 29,100 23,420 16,460 14,290
Order processing 12,640 16,960 9,360 7,260
Sales visit 12,600 10,240 9,240 8,150
Total customer-level oper. costs 54,340 50,620 35,060 29,700
Customer-level operating. income $ 74,060 $ 30,180 $ (2,860) $ 34,120
Try It! 14-2 Solution

Customer Distribution Channels

(all
amounts in $000s)
      Wholesale Customers   R
  Total Total West Region East Region Total
  (all customers) Wholesale Wholesaler Wholesaler Retail
  (1) = (2) + (5) (2) = (3) + (4) (3) (4) (5) = (6) + (7
Revenues (at actual prices) $2,383,220 $1,799,200 $698,400 $1,100,800 $584,
Customer-level costs 2,247,720 1,694,960 624,340 1,070,620 552,
Customer-level operating
income 135,500 104,240 $ 74,060 $ 30,180 31,
Distribution-channel costs 50,000 36,000 14,
Distribution-channel-level
oper. income 85,500 $ 68,240 $ 17,
Corporate-sustaining costs 48,000
Operating income $ 37,500
            
a
Cost of goods sold + Total customer-level operating costs from Try It 14-1