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I need help with solving the last two unsolved boxes. Glitter Inc. is a small distributor of mechanical pencils. Glitter identies its three major activities

I need help with solving the last two unsolved boxes.

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Glitter Inc. is a small distributor of mechanical pencils. Glitter identies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: g (Click the icon to view the activity and cost pool details.) 3 (Click the icon to view the 2016 operating income.) 0 (Click the icon to view additional information.) Read the muirement. First, determine the selling price to retailers in 2017. The selling price per pack to retailers in 2017 is $ 10-23 . Now determine the purchase price per packs of pencils in 2017. The purchase price per pack in 2017 is $ 3-30 . Now that we have determined the new selling price and purchase price for 2017, determine the operating income for 2017. Then, calculate the per unit amounts for 2017. (Round the per unit amounts to the nearest cent.) Total Per Unit Revenues w w Costs: Purchase cost of pencil packs 3 950.000 3.80 Ordering costs 60,000 0.24 Receiving and storage 300.000 1.20 Shipping 90,000 0.36 Tomi 005.5 1,400,000 5.60 $1,151,5oo' 4.63 Operating income How much must Glitter reduce its total cost and cost per unit if it is to earn the same target operating income in 2017 as it earned in 2016 (and thereby earn its required rate of return on investment). In referring to the 2016 operating income, Glitter will need to reduce its total costs by 40000 or 0-16 per unit if it is to achieve its target operating income in 2017. Glitter Inc. is a small distributor of mechanical pencils. Glitter identies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: a (Click the icon to view the activity and cost pool details.) a (Click the icon to view the 2016 operating income.) 0 (Click the icon to view additional information.) Read the muirement. 0 Data Table First, determine the selling price to retailers in 2 The selling price per pack to retailers in 2017 is Now determine the purchase price per packs of Activity Cost Driver Quantity of Cost Driver Cost per Unit of Cost Drlver The urchase rice er ask in 2017is 3 p p p p 2. Recelvlngandstorago Now that we have determined the new selling - 3. shipping of pencil packs to retailers 1. Placing and paying for orders of pencil packs Number of orders Loads moved Number of shipments 800 5,000 1 .500 $100 per order $60 per load $60 per shipment und the per unit : Total Revenues Costs: Purchase cost of pencil packs $ 950.0" . ' Print ' Done ' 0 Reference Total Per Unit Revenues Costs: Purchase cost of pencils Ordering costs Receiving and storage Shipping Total costs Operating income 2.750.000 $ 1,000,000 3 60,000 $ 300,000 $ 90,000 $ 1,450,000 $ 1,300,000 $ 11.00 4.00 0.24 1.20 0.36 5.80 5.20 0 More Info X For 2016, Glitter buys 250,000 pencil packs at an average cost of $4 per pack and sells them to retailers at an average price of $11 per pack. Assume Glitter has no xed costs and no inventories. For 2017, retailers are demanding a 7% discount at? the 2016 price. Glitters suppliers are only willing to give a 5% discount. Glitter expects to sell the same quantity of pencil packs in 2017 as it did in 2016. 0P9 How i Print H Done ' 0 Requirement If all other costs and costdriver inlomlation remain the same, by how much must Glitter reduce its total cost and cost per unit it it is to earn the same target operating income in 2017 as it earned in 2016 (and thereby earn its required rate of retum on Investment)? Print Print Done

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