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 1. Placing and paying for orders of pencil packs 2. Receiving and storage 3. Shipping of pencil packs to retailers Cost Driver Number of orders Loads moved Number of shipments Quantity of Cost Driver 500 4,000 1,500 Cost per Unit of Cost Driver $100 per order $60 per load $80 per 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. Gonzalos suppliers are only willing to give a 4% discount. Gon-zalo expects to sell the same quantity of pencil packs in 2017 as it did in 2016. Using value engineering, Gonzalo decides to make changes in its ordering and receiving-and-storing practices. By placing long-run orders with its key suppliers, Gonzalo expects to reduce the number of orders to 400 and the cost per order to $75 per order. By redesigning the layout of the warehouse and reconfiguring the crates in which the pencil packs are moved, Gonzalo expects to reduce the number of loads moved to 3,500 and the cost per load moved to $50. Required Will Gonzalo achieve its target operating income of $90,000 and its target operating income per unit of $0.36 per pencil pack in 2017? Show your calculations.