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(Click the icon to view the details.) Read the requirements. 1. Calculate Mastic's operating income for 2019. 2. For 2020 , retailers are demanding a
(Click the icon to view the details.) Read the requirements. 1. Calculate Mastic's operating income for 2019. 2. For 2020 , retailers are demanding a 4% discount off the 2019 price. Mastic's suppliers are only willing to give a 3% discount. Mastic 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 Mastic's operating income for 2020 . 3. Suppose further that Mastic decides to make changes in its ordering and receiving-and-storing practices. By placing long-run orders with its key suppliers, Mastic expects to reduce the number of orders to 400 and the cost per order to $40 per order. By redesigning the layout of the warehouse and reconfiguring the crates in which the marble tiles are moved, Mastic expects to reduce the number of loads moved to 3,425 and the cost per load moved to $48. Will Mastic achieve its target operating income of $3.31 per tile in 2020 ? Show your calculations
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