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Mastic Tiles is a small distributor of marble tiles. Mastic identifies its three major activities and cost pools as ordering, receiving and storage, and shipping,
Mastic Tiles is a small distributor of marble tiles. Mastic 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 details.) For 2019, Mas Assume Mastic has no fixed costs and no inventories. Requirements 1. Calculate Mastic's operating income for 2019. 2. For 2020, retailers are demanding a 4% discount off the 2019 price. Mastic's suppliers are only willing to give a 3% discount. Mastic expects to sell the same quantity of marble tiles in 2020 as in 2019. If all other costs and cost-driver information remain the same, calculate Mastic's operating income for 2020. 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, Mastic expects to reduce the number of orders to 500 and the cost per order to $40 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 3,725 and the cost per load moved to $48. Will Mastic achieve its target operating income of $0.63 per tile in 2020 ? Show your calculations. (Click the icon to view the details.) Read the requirements. Data table (Click the icon to view the details.) Read the requirements
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