1 3-18 Target prices. target costs. activity-based costing. Snappy Tiles is a small distributor ot marble tiles. Snappy identies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details tor 21113: Quantity ot Cost per Unit Activity Dost Driver Dost Driver ol Boat Driver I. Placing and paying for orders of marble tiles Number of orders 5111] $50 per order 2. Receiving and storage Loads moved 4.01:0 $31] per load 3. Shipping oi marble tiles to retailers Number of shipments l Sill] per shipment For 21113, Snappy buys 2511M marble tiles at an average cost of$3 per tile and sells them to retailers at an average price of per tile. Assume Snappy has no xed costs and no inventories. 1. Calculate Snappy's operating income for 2013. 2. For 21114, retailers are demanding a 5% discount off the 2013 price. Snappy's suppliers are only will ing to give a 416 discount Snappy expects to sell the same quantity ot marble les in 2014 as in 21.113. If all other costs and cost-driver information remain the same. calculate Snappy's operating income for 2014. 3. Suppose further that Snappy decides to make changes in its ordering and receivingaudstoling practices. By placing longurn orders with its key suppliers, Snappy expects to reduce the number of orders to 2111) and the cost per order to $25 per order. By redesigning the layout oi the warehouse and reconguring the crates in which the marble tiles are moved, Snappy expects to reduce the number of loads moved to 3.I25 and the cost per load moved to 528. Will Snappy achieve its target operating income ofSDBD pertile in ED\"? Show your calculations