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please answer the question Score: 0 of 15 pts 19 of 25 20 complete) E13-19 (similar to) Terra Tiles is a small distributor of marble
please answer the question
Score: 0 of 15 pts 19 of 25 20 complete) E13-19 (similar to) Terra Tiles is a small distributor of marble tiles. Terra identifies its three major activities and cost pools as ordering, receiving and storage and shipping and it reports the following details for 2016 E (Click the icon to view the details.) For 2016, Terra buys 260.000 marble tiles at an average cost of $2 per tile and sells them to retailers at an average price of $5 per tile. Assume Terra has no fixed costs and no inventories. Read the requirements Requirement 1. Calculate Terra's operating income for 2016. Data Table Revenues Costs: Purchase cost of tiles Ordering costs Receiving and storage Quantity of Cost Driver Cost per Unit of Cost Driver Cost Driver Number of orders 800 $70 per order Activity 1. Placing and paying for orders of marble tiles 2. Receiving and storage 3. Shipping of marble tiles to retailers Loads moved Shipping 4500 $40 per load Number of shipments 1.800 $60 per shipment Total costs Operating income Print DoneStep by Step Solution
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