Grizzly Inc. is a small distributor of mechanical pencils. Grizzly identifies its three major activities 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 pool details.) (Click the icon to view the 2016 operating income.) (Click the icon to view additional information.) Required Addtional information Operating income First determine the selling price to retailers in 2017. The selling price per pack to retailers in 2017 is $ 9.40 Total For 2016, Grizzly buys 250,000 pencil packs at an average cost of $4 per pack and sells them to retailers at an average price of $10 per pack. Assume Grizzly has no fixed costs and no inventories. For 2017, retailers are demanding a 5% discount off the 2016 price. Grizzly's suppliers are only willing to give a 5% discount. Grizzly expects to sell the same quantity of pencil packs in 2017 as it did in 2016. Per Unit 10.00 Now determine the purchase price per packs of pencils in 2017 Revenues S 2,500,000 $ The purchase price per pack in 2017 is 1. 4.00 Costs: Purchase cost of pencils Ordering costs Receiving and storage Shipping 0.16 i Activity and cost pool details 1,000,000 40,000 300,000 135,000 1,475,000 1.20 0.54 5.90 Total costs S 1,025,000 $ 4.10 Activity Operating income Cost Driver 1. Placing and paying for orders of pencil packs Number of orders 2. Receiving and storage Loads moved 3. Shipping of pencil packs to retailers Number of shipments Quantity of Cost per Unit Cost Driver of Cost Driver 400 $100 per order 5,000 $60 per load 1,500 $90 per shipment Print Done Print Done Enter any number in the edit field