1113-3 (Slmlar to) Question Help Gala Inc. is a small distributor of mechanical pencils Gala identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016 EEB (Click the icon to view the activity and cost pool details) (Click the icon to view additional information.) Will Gala achieve its target operating income of $811,000 and its target aperating income per unit at $3 24 per pencil pack in 2017? Show your caculations First, determine the selling price to retailers in 2017 The selling price per pack to retailers in 2017 is S More info For 2016, Gala buys 250,000 pencil packs at an average cost ot $5 per pack and sells them to retailers at an average price of $10 per pack Assume Gala has no fixed costs and no inventones. For 2017, retailers are demanding a 6% discount or the 2016 price Gala's supplers are only willing to give a 5% discount Gala expects to sell the same quantity of pencil packs in 2017 as it did in 2016 Data Table Using value engineering, Gala decides to make changes in its ordering and receiving-and storing practices. By placing long-run orders with its key suppliers Gala expects to reduce the number of orders to 100 and the cost per order to S75 By redesigning the layout of the warehouse and recontfiguring the crates in which the pencil packs are moved, Gala expects to reduce the number of loads moved to 3,800 and the cost per load moved to $50 Quantity of Cost per Unit Activity 1. Placing and paying tor orders of pencil packs 2. Recciving and storage 3. Shipping of pencil packs to retailers Cost Driver Cost Driver of Cost Driver Number of orders Loads moved Number of shipments 400 $100 per order $60 per load 1500 $90 per shipment Print Done 4,400 PrintDone Clear Al Check Answer O Type here to search 2/26 2019