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Gitter Inc is a small distributor of mechanical pencils. Glitter identifies its three major activites and cost pools as ordering, receiving and storage, and
Gitter Inc is a small distributor of mechanical pencils. Glitter identifies its three major activites and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016 (Click the icon to view the activity and cost poot details) For 2016, Glitter buys 250,000 pencil packs at an average cost of $3 per pack and sells them to retailers at an average price of $9 per pack. Assume Gitter has no foxed costs and no inventories Read the requirement CHD Begin by calculating the operating income Then, calculate the per unit amounts. (Round the per unt amounts to the nearest cont) Revenues Costs Purchase cost of pencil packs Ordering costs Receiving and storage Shipping Total costs Operating income Total Data table Quantity of Activity Cost Driver Cost Driver Cost per Unit of Cost Driver 1. Placing and paying for orders of pencil packs Number of orders 2. Receiving and storage 700 $100 per order Loads moved 5,000 $60 per load 3. Shipping of pencil packs to retailers Number of shipments 1,500 $90 per shipment Print Done cil pa Calculate Glitter's operating income for 2016.
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