14.2 - Deco Tiles is a small distributor of marble tiles. Deco identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2019

Deco Tiles is a small distributor of marble tiles. Deco identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2019: (Click the icon to view the details.) For 2019, Deco buys 230,000 marble tiles at an average cost of $2 per tile and sells them to retailers at an average price of $4 per tile. Assume Deco has no fixed costs and no inventories. Read the Data table Requirements 1. Calculate Deco's operating income for 2019 . 2. For 2020 , retailers are demanding a 4% discount off the 2019 price. Deco's suppliers are only willing to give a 3% discount. Deco expects to sell the same quantity of marble tiles in 2020 as in 2019. If all other costs and cost-driver information remain the same, calculate Deco's operating income for 2020. 3. Suppose further that Deco decides to make changes in its ordering and receiving-and-storing practices. By placing long-run orders with its key suppliers, Deco expects to reduce the number of orders to 300 and the cost per order to $45 per order. By redesigning the layout of the warehouse and reconfiguring the crates in which the marble tiles are moved, Deco expects to reduce the number of loads moved to 3,925 and the cost per load moved to $38. Will Deco achieve its target operating income of $0.43 per tile in 2020 ? Show your calculations