Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: E (Click the icon to view the activity and cost pool details.) (Click the icon to view the 2016 operating income.) A (Click the icon to view additional information.) Requred Now that we have determined the new selling price and purchase price for 2017, determine the operating income for 2017. Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) Total Revenues Costs: Purchase cost of pencil packs Ordering costs Receiving and storage Shipping Total costs Operating income Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check Answer Try It 12-1 (similar to) E Question Help Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: E (Click the icon to view the activity and cost pool details.) (Click the icon to view the 2016 operating income.) A (Click the icon to view additional information.) Required Now that we have determined the new selling price and purchase price for 2017, determine the operating income for 2017. Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) Total Revenues Costs: Purchase cost of pencil packs Ordering costs Receiving and storage Shipping Total costs Operating income Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check Answer Try It 12-1 (similar to) E Question Help Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: E (Click the icon to view the activity and cost pool details.) E (Click the icon to view the 2016 operating income.) A (Click the icon to view additional information.) Required Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) Activity and cost pool details Quantity of Cost per Unit Activity Cost Driver Cost Driver of Cost Driver 1. Placing and paying for orders of pencil packs Number of orders 400 $100 per order 2. Receiving and storage Loads moved 4,500 $60 per load 3. Shipping of pencil packs to retailers Number of shipments 1,500 $90 per shipment Print Done Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check Answer Try It 12-1 (similar to) Question Help Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: on to view the 2016 operating income.) Operating income R Total Per Unit 17, determine the operating income for 2017. Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) $ 1,750,000 $ 7.00 Revenues Costs: Purchase cost of pencils 1,000,000 4.00 Ordering costs 40,000 0.16 Receiving and storage 270,000 1.08 135,000 0.54 Shipping Total costs 1,445.000 5.78 $ 305,000 $ 1.22 Operating income Print Done parts remaining Clear All Check Answer 2. Try It 12-1 (similar to) E Question Help Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: E (Click the icon to view the activity and cost pool details.) E (Click the icon to view the 2016 operating income.) A (Click the icon to view additional information.) Required Now that we have determined the new selling price and purchase price for 2017, determine the operating income for 2017. Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) Addtional information For 2016, Guppy buys 250,000 pencil packs at an average cost of $4 per pack and sells them to retailers at an average price of $7 per pack. Assume Guppy has no fixed costs and no inventories. For 2017, retailers are demanding a 6% discount off the 2016 price. Guppy's suppliers are only willing to give a 5% discount. Guppy expects to sell the same quantity of pencil packs in 2017 as it did in 2016. Print Done Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check Answer Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: E (Click the icon to view the activity and cost pool details.) (Click the icon to view the 2016 operating income.) A (Click the icon to view additional information.) Required Now that we have determined the new selling price and purchase price for 2017, determine the operating income for 2017. Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) Total - X Required If all other costs and cost-driver information remain the same, by how much must Guppy reduce its total cost and cost per unit if it is to earn the same target operating income in 2017 as it earned in 2016 (and thereby earn its required rate of return on investment)? Print Done Enter any number in the edit fields and then click Check Answer. 2 parts remaining Clear All Check Answer Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: E (Click the icon to view the activity and cost pool details.) (Click the icon to view the 2016 operating income.) A (Click the icon to view additional information.) Requred Now that we have determined the new selling price and purchase price for 2017, determine the operating income for 2017. Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) Total Revenues Costs: Purchase cost of pencil packs Ordering costs Receiving and storage Shipping Total costs Operating income Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check Answer Try It 12-1 (similar to) E Question Help Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: E (Click the icon to view the activity and cost pool details.) (Click the icon to view the 2016 operating income.) A (Click the icon to view additional information.) Required Now that we have determined the new selling price and purchase price for 2017, determine the operating income for 2017. Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) Total Revenues Costs: Purchase cost of pencil packs Ordering costs Receiving and storage Shipping Total costs Operating income Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check Answer Try It 12-1 (similar to) E Question Help Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: E (Click the icon to view the activity and cost pool details.) E (Click the icon to view the 2016 operating income.) A (Click the icon to view additional information.) Required Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) Activity and cost pool details Quantity of Cost per Unit Activity Cost Driver Cost Driver of Cost Driver 1. Placing and paying for orders of pencil packs Number of orders 400 $100 per order 2. Receiving and storage Loads moved 4,500 $60 per load 3. Shipping of pencil packs to retailers Number of shipments 1,500 $90 per shipment Print Done Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check Answer Try It 12-1 (similar to) Question Help Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: on to view the 2016 operating income.) Operating income R Total Per Unit 17, determine the operating income for 2017. Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) $ 1,750,000 $ 7.00 Revenues Costs: Purchase cost of pencils 1,000,000 4.00 Ordering costs 40,000 0.16 Receiving and storage 270,000 1.08 135,000 0.54 Shipping Total costs 1,445.000 5.78 $ 305,000 $ 1.22 Operating income Print Done parts remaining Clear All Check Answer 2. Try It 12-1 (similar to) E Question Help Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: E (Click the icon to view the activity and cost pool details.) E (Click the icon to view the 2016 operating income.) A (Click the icon to view additional information.) Required Now that we have determined the new selling price and purchase price for 2017, determine the operating income for 2017. Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) Addtional information For 2016, Guppy buys 250,000 pencil packs at an average cost of $4 per pack and sells them to retailers at an average price of $7 per pack. Assume Guppy has no fixed costs and no inventories. For 2017, retailers are demanding a 6% discount off the 2016 price. Guppy's suppliers are only willing to give a 5% discount. Guppy expects to sell the same quantity of pencil packs in 2017 as it did in 2016. Print Done Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check Answer Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: E (Click the icon to view the activity and cost pool details.) (Click the icon to view the 2016 operating income.) A (Click the icon to view additional information.) Required Now that we have determined the new selling price and purchase price for 2017, determine the operating income for 2017. Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) Total - X Required If all other costs and cost-driver information remain the same, by how much must Guppy reduce its total cost and cost per unit if it is to earn the same target operating income in 2017 as it earned in 2016 (and thereby earn its required rate of return on investment)? Print Done Enter any number in the edit fields and then click Check Answer. 2 parts remaining Clear All Check Answer Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: E (Click the icon to view the activity and cost pool details.) (Click the icon to view the 2016 operating income.) A (Click the icon to view additional information.) Requred Now that we have determined the new selling price and purchase price for 2017, determine the operating income for 2017. Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) Total Revenues Costs: Purchase cost of pencil packs Ordering costs Receiving and storage Shipping Total costs Operating income Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check Answer Try It 12-1 (similar to) E Question Help Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: E (Click the icon to view the activity and cost pool details.) (Click the icon to view the 2016 operating income.) A (Click the icon to view additional information.) Required Now that we have determined the new selling price and purchase price for 2017, determine the operating income for 2017. Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) Total Revenues Costs: Purchase cost of pencil packs Ordering costs Receiving and storage Shipping Total costs Operating income Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check Answer Try It 12-1 (similar to) E Question Help Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: E (Click the icon to view the activity and cost pool details.) E (Click the icon to view the 2016 operating income.) A (Click the icon to view additional information.) Required Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) Activity and cost pool details Quantity of Cost per Unit Activity Cost Driver Cost Driver of Cost Driver 1. Placing and paying for orders of pencil packs Number of orders 400 $100 per order 2. Receiving and storage Loads moved 4,500 $60 per load 3. Shipping of pencil packs to retailers Number of shipments 1,500 $90 per shipment Print Done Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check Answer Try It 12-1 (similar to) Question Help Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: on to view the 2016 operating income.) Operating income R Total Per Unit 17, determine the operating income for 2017. Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) $ 1,750,000 $ 7.00 Revenues Costs: Purchase cost of pencils 1,000,000 4.00 Ordering costs 40,000 0.16 Receiving and storage 270,000 1.08 135,000 0.54 Shipping Total costs 1,445.000 5.78 $ 305,000 $ 1.22 Operating income Print Done parts remaining Clear All Check Answer 2. Try It 12-1 (similar to) E Question Help Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: E (Click the icon to view the activity and cost pool details.) E (Click the icon to view the 2016 operating income.) A (Click the icon to view additional information.) Required Now that we have determined the new selling price and purchase price for 2017, determine the operating income for 2017. Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) Addtional information For 2016, Guppy buys 250,000 pencil packs at an average cost of $4 per pack and sells them to retailers at an average price of $7 per pack. Assume Guppy has no fixed costs and no inventories. For 2017, retailers are demanding a 6% discount off the 2016 price. Guppy's suppliers are only willing to give a 5% discount. Guppy expects to sell the same quantity of pencil packs in 2017 as it did in 2016. Print Done Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check Answer Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: E (Click the icon to view the activity and cost pool details.) (Click the icon to view the 2016 operating income.) A (Click the icon to view additional information.) Required Now that we have determined the new selling price and purchase price for 2017, determine the operating income for 2017. Then calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) Total - X Required If all other costs and cost-driver information remain the same, by how much must Guppy reduce its total cost and cost per unit if it is to earn the same target operating income in 2017 as it earned in 2016 (and thereby earn its required rate of return on investment)? Print Done Enter any number in the edit fields and then click Check Answer. 2 parts remaining Clear All Check Answer