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 $2018$

$($Click the ioon to view the details.$)$

For $2019,$ Bisk buys $270,000$ marble tiles at an average cost of $$2$ per tile and sells them to retailers at an average price of $$6$ per tile. Assume Bisk has no fixed costs and no inventories.

Read the requirements.

Requirement $1.$ Calculate Bisk's operating income for $2019.$

Revenues $$

Costs:

Purchase cost of tiles

Ordering costs $$

Receiving and storage $$

Shipping $$

Total costs $$

Operating income $$

Calculate Bisk's operating income for $2019.$

For $2020,$ retailers are demanding a $5\%$ discount off the $2019$ price. Bisk's suppliers are only willing to give a $4\%$ discount. Bisk 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 Bisk's operating income for $2020.$

Suppose further that Bisk decides to make changes in its ordering and receiving$-$and$-$storing practices. By placing long$-$run orders with its key suppliers, Bisk expects to reduce the number of orders to $300$ and the cost per order to $$30$ per order. By redesigning the layout of the warehouse and reconfiguring the crates in which the marble tiles are moved, Bisk expects to reduce the number of loads moved to $4,025$ and the cost per load moved to $$38.$ Will Bisk achieve its target operating income of $$2\mathrm{.}49$ per tile in $2020?$ Show your calculations.

Data table

$\backslash$table$[[$Activity$,$Cost Driver,$\backslash$table$[[$Quantity of$],[$Cost Driver$]],\backslash$table$[[$Cost per Unit of$],[$Cost Driver$]]],[1.$ Placing and paying for orders of marble tiles,Number of orders,$600,$$$60$ per order$],[2.$ Receiving and storage,Loads moved,$4,900,$$$40$ per load$],[3.$ Shipping of marble tiles to retailers,Number of shipments,$1,700,$$$30$ per shipment$]]$