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Gonzalo Inc. is a small distributor of mechanical pencils. Gonzalo identifies its three major activities and cost pools as ordering, receiving and storage, and
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 2021: (Click the icon to view the activity and cost pool details.) (Click the icon to view additional information.) Will Gonzalo achieve its target operating income of $90,000 and its target operating income per unit of $0.36 per pencil pack in 2022? Show your calculations. First, determine the selling price to retailers in 2022. What is the selling price per pack to retailers in 2022? Since Gonzalo's suppliers are willing to grant a 4% discount, we must determine the cost to purchase the packs of pencils at the discounted price. What is the purchase price per pack in 2022? Calculate Gonzalo's operating income for 2022. Then, calculate the per unit amounts. (Round the per unit amounts to the nearest cent.) Revenues Costs: Purchase cost of pencil packs Ordering costs Receiving and storage Shipping Total costs Operating income Total Per Unit
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