Eagle Tiles is a small distributor of marble tiles. Eagle 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, Eagle buys 290,000 marble tiles at an average cost of $3 per tile and sells them to retailers at an average price of $7 per tile. Assume Eagle has no fixed costs and no inventories. Read the requirements Data table Requirement 1. Calculate Eagle's operating income for 2016. Revenues Costs Cost Driver Number of orders Activity 1. Placing and paying for orders of marble tiles 2. Receiving and storage 3. Shipping of marble tiles to retailers Purchase cost of tiles Ordering costs Receiving and storage Shipping Quantity of Cost per Unit of Cost Driver Cost Driver 500 $80 per order 4,900 $60 per load 2,100 $50 per shipment Loads moved Number of shipments Total costs Requirements Operating income 1. 2. 3. Calculate Eagle's operating income for 2016. For 2017, retailers are demanding a 4% discount off the 2016 price. Eagle's suppliers are only willing to give a 3% discount. Eagle 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 Eagle's operating income for 2017 Suppose further that Eagle decides to make changes in its ordering and receiving-and-storing practices. By placing long-run orders with its key suppliers, Eagle expects to reduce the number of orders to 200 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, Eagle expects to reduce the number of loads moved to 4,025 and the cost per load moved to $58. Will Eagle achieve its target operating income of $3.01 per tile in 2017? Show your calculations Help me solve this Etext pages Get more help