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Gallant Inc is a small distroutor of mechanical pencils. Galant identifies ts three major activir.ies and cost pools as ordering, receiing and strage and shipping,
Gallant Inc is a small distroutor of mechanical pencils. Galant identifies ts three major activir.ies and cost pools as ordering, receiing and strage and shipping, and it reports the talkiwing dasr 21216 For 2016, Galant buys 250,000 pencil packs at an average cost of $3 per pack and sells them to retailers at an average price of $7 per pack Assume Gallant has no t no inventones (Click the Kon'new the actrity and cost pool details } Begin by calculating the operating income. Then, calculate the per unit amounts. (Round the per unlt amounts to the nearest cent.) Total Per Unlt Data Table 1,750,000 Rovenues Costs Purchase cost of pencil packs Crtening t Receving and storage Shipping 5o o00 70,000 270,000 105,000 ,19h 00O 5 555,000 Quantity f Cost per Unit Actrvity 1. Placiha and paying for orders or pencll packs 2. Roccving and storage 3. Shipping of pencil packs ta retalicrs Cost Driver ot Cost Diver Number of orders Loads moved Number of shipments 700 5100 per order 560 per load 1500 $70 per shipment 4,500 Total costs Operating Income Print Dane
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