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Gonzalo Inc. is a small distributor of mechanical pencils. Gomzalo identifies its thee major activities and cost pools as ordering, receiving and storage, and shipping,

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Gonzalo Inc. is a small distributor of mechanical pencils. Gomzalo identifies its thee major activities and cost pools as ordering, receiving and storage, and shipping, and13- it reports the following details for 2017: Activity 1. Piacing and paying for Quantity of Cost Driver 400 Cost per Unit of Cost Driver Cost Driver Number of orders $75 per order orders of pencil packs 2. Receiving and storage Loads moved 3. Shipping of pencil Number of shipments 3,500 1,500 $50 per load T$80 per shipment packs to retailers For 2017, Gonzalo buys 250,000 pencil packs at an average cost of $5.76 per pack. Gonzalo plans to use cost-plus pricing. Calculate the prospective selling price (1) if Gonzalo marks up the purchase costs of the pencil packs by 33% and (2) if Gonzalo marks up the full cost of the pencil packs by 7%

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