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Bisk Tiles is a small distributor of marble tiles. Bisk 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 details.) For 2016, Bisk buys 310,000 marble tiles at an average cost of $3 per tile and sells them to retailers at an average price of $5 per tile. Assume Bisk has no fixed costs and no inventories. Activity 1. Placing and paying for orders of marble tiles 2. Receiving and storage 3. Shipping of marble tiles to retailers Cost Driver Number of orders Loads moved Number of shipments Quantity of Cost per Unit of Cost Driver Cost Driver 600 $80 per order 4,200 $50 per load 1,700 $30 per shipment Requirement 1. Calculate Bisk's operating income for 2016 Revenues $ 1,550,000 Costs: Purchase cost of tiles $ 930,000 Ordering costs 48,000 Receiving and storage 210,000 Shipping 51,000 Total costs 1,239,000 $ 311,000 Operating income Requirement 2. For 2017, retailers are demanding a 6% discount off the 2016 price. Bisk's suppliers are only willing to give a 5% discount. Bisk expects to sell the same quantity of marble tiles in 2017 as in 2016. If all other costs and cost-driver information remain the same, calculate Bisk's operating income for 2017. 527,000 Revenues Costs Purchase cost of tiles Ordering costs Receiving and storage Shipping Total costs Operating income 418,500 48,000 210,000 51,000 727,500 200,500