E13-19 (final answer) Question Help Terra Tiles is a small distributor of marble tiles. Terra 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, Terra buys 260,000 marble tiles at an average cost of S4 per ile and sells thern to retailers al an average price of S7 per tile. Assuie Terra has no fixed costs and no inverntories. Read the requrements Requirement 1. Caiculate Tema's aperating income for 2016 Terra's operating income for 2016 is S 1. Calculatc Terra's operating inccme tor 2016. 2. For 2017, retailers are demanding 5% discount off the 2016 price. Terra's suppliers are only Data Table willing to give 3% discount Terra expects to sell the same quantity of marble tiles in 2017 as in 2018. If all other costs and cost-driver information remain the same, calculate Terra's operating income for 2017 3. Suppose further that Terra decides to make changes in its ordering and receiving-and-storing Quantity of Cost per Unit Activity 1. Placing and paying for orders of marble tileS Number of orders 2. Receiving and storage 3. Shipping of marble tiles to retailers prectices By placing long-run orders with its key suppliers, Terra expects to reduce the number of orders to 400 and the cost per order to $35 per onder By redesigning the layout ot the warehouse and recontguring the crates in which the marble hles are moved, Terra expects to reduce the number ot loads moved to 3,625 and the cost per load moved to $38. Will Terma achieve its target operating income of $2 09 per tle in 2017? Show your calculations Cost Driver Cost Driver 700 4,500 2,100 of Cost Driver S70 per order S40 per load S50 per shipment Loads moved Number of shipments Print Done Print Done Enter any number in the edit fields and then click Check Answer Clear All Check Answer O Type here to search /8/2019