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 $2019$ :

$($Click the icon to view the activity and cost pool details.$)$

For $2019,$ Guppy buys $250,000$ pencil packs at an average cost of $$3$ per pack and sells them to retailers at an average price of $$7$ per pack. Assume Guppy has no fixed costs and no inventories.

Calculate Guppy's operating income for $2019.$

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

$800$$$100$ per order

Loads moved

$4,500$$$60$ per load

Number of shipments

$1,500$

$$70$ per shipment