Homework: ADMN3121 - Lab #03 (Fall20) Save Score: 0 of 18 pts 1 of 4 (0 complete) HW Score: 0%, 0 of 70 pts Try It 12-1 (similar to) Question Help Gallant Inc. is a small distributor of mechanical pencils. Gallant 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 First determine the selling price to retailers in 2017. The selling price per pack to retailers in 2017 is Activity and cost pool details Quantity of Cost Driver Activity Cost Driver Number of orders 400 1. Placing and paying for orders of pencil packs 2. Receiving and storage 3. Shipping of pencil packs to retailers Cost per Unit of Cost Driver $100 per order $60 per load $60 per shipment 4,500 Loads moved Number of shipments 1,500 Print Done i - X Operating income Total Per Unit $ 2,750,000 $ 11.00 Revenues 3.00 Costs: Purchase cost of pencils Ordering costs Receiving and storage 0.16 750,000 40,000 270,000 90,000 1.08 0.36 Shipping Total costs 1,150,000 4.60 $ 1,600,000 $ 6.40 Operating income Print Done Clear AW - X i Addtional information For 2016, Gallant buys 250,000 pencil packs at an average cost of $3 per pack and sells them to retailers at an average price of $11 per pack. Assume Gallant has no fixed costs and no inventories. For 2017, retailers are demanding a 6% discount off the 2016 price. Gallant's suppliers are only willing to give a 5% discount. Gallant expects to sell the same quantity of pencil packs in 2017 as it did in 2016. Print Done