Jastic Tiles is a small distributor of marble tles. Mastic identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details 2016 Click the icon to view the details) For 2016 Mastic buys 240.000 marbletes at an average cost of $2 per tile and sells them to retailers at an average price of 57 per le Assume Mastic has no feed costs and no Inventories Read the requirements Purchase cost of Siles5 465,500 Ordering costs 63.000 Receiving and storage 258.000 92.000 Shipping 878 500 Tout $ 734 200 Operating income Requirement 3. Suppose further that Mastic decides to make changes in its ordering and receiving and storing practices. By placing long run orders with its key suppliers. Most expeds to reduce the number of orders to 600 and the cost per order to 535 per order By redesigning the layout of the warehouse and reconfiguring the crates in which the marble les are moved Mastic expects to reduce the number of loads moved to 3.425 and the cost per load moved to 558. Wil Mastic achieve is target operating income of 533 perte in 2017? Begin by calculating Mass operating income then the per unit amounts the company makes these changes (Round the per unit amounts to the nearest Cont) Reves Costs Purchase cost of des Ordering costs Receiving og Shipping Operating income Enter any number in the edited and then co Check Answer Check Answer Requirements 1. 2. vith it he cre incon 13. Calculate Mastic's operating income for 2016. For 2017, retailers are demanding a 4% discount off the 2016 price. Mastic's suppliers are only willing to give a 3% discount. Mastic expects to sell the same quantity of marble tiles in 2017 as in 2016. If all other costs and cost-driver information remain the same, calculate Mastic's operating income for 2017. Suppose further that Mastic decides to make changes in its ordering and receiving-and-storing practices. By placing long-run orders with its key suppliers, Mastic expects to reduce the number of orders to 600 and the cost per order to $35 per order. By redesigning the layout of the warehouse and reconfiguring the crates in which the marble tiles are moved, Mastic expects to reduce the number of loads moved to 3.425 and the cost per load moved to $58. Will Mastic achieve its target operating income of $3.88 per tile in 2017? Show your calculations ng earest Print Done elds and then click Check Answer Mesti Tes is a small distributor of marble files. Mastic identifies its three major activities and cost pools as ordering receiving and storage and shipping and it reports the following details for 2016 Cd the icon to view the details) 2016 Mastic buys 240.000 martieties at an average cost of $2 per te and sells them to retailers at an average price of 57 per tile. Assume Mastic has no fred costs and no Read the time Purchase cost of Ses 5 465.500 258 Requirements Ordering costs Receiving and storage Shipping - X Data Table Toulo Operating income Requirement Suppo suppliers Mastic in which the matters 53 88 persen 2017 Activity 1. Placing and paying for orders of marbles 2. Receiving and storage 3. Shipping of marties to retailers Cost Driver Number of orders Load moved Number of sheets Quantity of Cost per Unit of Cost Driver Cost Driver 900 S70 per order 4300550 per load 2.300 540 per shipment Beg by dating Mai Done Ordering nem Check Answer en number in the 2
