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Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping,
Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for :
Click the icon to view the activity and cost pool details.
For Guppy buys pencil packs at an average cost of $ per pack and sells them to retailers at an average price of $ per pack. Assume Guppy has no fixed costs and no inventories.
Calculate Guppy's operating income for
Begin by calculating the operating income. Then, calculate the per unit amounts. Round the per unit amounts to the nearest cent.
Total Per Unit
Revenues
Costs:
Purchase cost of pencil packs
Ordering costs
Receiving and storage
Shipping
Total costs
Operating income
Data table
Activity
Placing and paying for orders of pencil packs
Receiving and storage
Shipping of pencil packs to retailers
Cost Driver
Quantity of Cost per Unit of Cost Cost Driver Driver
Number of orders
$ per order
Loads moved
$ per load
Number of shipments
$ per shipment
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