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Listello Tiles is a small distributor of marble tiles. Listello identifios its three major activitim and cost pools as ordering, recelving and storage, and shipping,
Listello Tiles is a small distributor of marble tiles. Listello identifios its three major activitim and cost pools as ordering, recelving and storage, and shipping, and it reports the following details for 2016 : (Click the icon to vlew the details.) For 2016, Listello buys 260,000 marble tles at an average cost of $2 per tilo and sells them to retailors at an average price of $5 per tile. Assumo Listello has no fixed costs and no inventories. Read the cequirements. Requirements 1. Calculate Listello's operating income for 2016 . 2. For 2017, retailers are demanding a 5% discount off the 2016 price. Listello's suppliers are only willing to give a 3% discount. Listello 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, calculato Listello's operating income for 2017 3. Suppose further that Listello decides to make changes in its ordering and recciving-and-storing practices. By placing long-run arders with its key suppliers, Listello expects to reduce the number of orders to 100 and the cost per order to $10 per order. By redesigning the layout of the warehouse and reconfiguring the crates in wtich the marble tiles are moved, Listello expects to reduce the number of loads moved to 4,025 and the cost per load moved to 548 . Will Listello achieve its target operating income of \$2.11 per tile in 2017? Show your calculations. Data table
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