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1. Done Tiles Company is a small distributor of marble tiles. It has three major activities and cost pools as below: Cost Driver of Cost
1. Done Tiles Company is a small distributor of marble tiles. It has three major activities and cost pools as below: Cost Driver of Cost Driver W W orders of marble tiles orders Receiving and storage 4,000 $60 per load 3 Shipping and marble tiles to Number of 1,500 $80 pe retailers shipments shipment For 2015, Done buys 250,000 marble tiles at average costs of $6 per tile and sells them to retailers at an average price of $8 per tile. Assume there are no xed costs and no inventories. Required: a. Calculate Done's operating income for 2015. b. For 2016, retailers are demanding a 5%. discount off the 2015 prices. Done's suppliers are only willing to give a 4% discount. Done expects to sell the same quantity of marble tiles in 2010 as of 2015. If all other costs and costs information remain the same, calculate Done's operating income for 2016
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