onzalo Inc. is a small distributor of mechanical pencils. Gonzalo identifies its three

$.$ Ais CEC t $.$ One $.$ major activities and cost pools as ordering, receiving and storage, and shipping, and

it reports the following details for $2021$:

Quantity of Cost per Unit of

Activity Cost Driver Cost Driver Cost Driver

$1.$ Placing and paying for orders Number of orders $500$ $$100$ per order

of pencil packs

$2.$ Receiving and storage Loads moved $4,000$ $$60$ per load

$3.$ Shipping of pencil packs to Number of shipments $1,500$ $$80$ per shipment

retailers

For $2021,$ Gonzalo buys $250,000$ pencil packs at an average cost of $$6$ per pack

and sells them to retailers at an average price of $$8$ per pack. Assume Gonzalo has

no fixed costs and no inventories. For $2022,$ retailers are demanding a $5\%$ discount

off the $2021$ price. Gonzalo$$s suppliers are only willing to give a $4\%$ discount.

Gonzalo expects to sell the same quantity of pencil packs in $2022$ as it did in $2021.$

Using value engineering, Gonzalo decides to make changes in its ordering and

receiving$-$and$-$storing practices. By placing long$-$run orders with its key suppliers,

Gonzalo expects to reduce the number of orders to $400$ and the cost per order to

$$75$ per order. By redesigning the layout of the warehouse and reconfiguring the

crates in which the pencil packs are moved, Gonzalo expects to reduce the number

of loads moved to $3,500$ and the cost per load moved to $$50.$

Required

Will Gonzalo achieve its target operating income of $$90,000$ and its target operating

income per unit of $$0\mathrm{.}36$ per pencil pack in $2022?$ Show your calculations.