Gonzalo Inc. is a small distributor of mechanical pencils. Gonzalo identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: Activity Cost Driver Quantity of Cost per Unit Cost Driver of Cost Driver 1. Placing and Number of 500 paying for orders of orders pencil packs $100 per order 2. Receiving and Loads moved 4,000 $60 per load storage 1. Placing and paying for orders of pencil packs Number of 500 $100 per order orders 2. Receiving and Loads moved 4,000 $60 per load storage 3. Shipping of pencil Number of 1,500 $80 per packs to retailers shipments shipment For 2016, Gonzalo buys 250,000 pencil packs at an average cost of $6 per pack and sells them to retailers at an average price of $8 per pack. Assume Gonzalo has no fixed costs and no inventories. For 2017, retailers are demanding a 5% discount off the 2016 price. Gonzalo's suppliers are only willing to give a 4% discount. Gonzalo expects to sell the same quantity of pencil packs in 2017 as it did in 2016