Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help :( receiving and storage, and shipping, and it reports th ico Operating income Total Per Unit Revenues $ 2,500,000 $ 10.00 4.00 Costs:

please help :( image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
receiving and storage, and shipping, and it reports th ico Operating income Total Per Unit Revenues $ 2,500,000 $ 10.00 4.00 Costs: Purchase cost of pencils Ordering costs Receiving and storage Shipping 1,000,000 90.000 0.36 201 270.000 105.000 1.08 0.42 ounts for 2017. (Round Total costs 1.465,000 5.86 $ 1.035,000 $ 4.14 Operating income Print Done on. 0 Activity and cost pool details Activity Cost Driver 1. Placing and paying for orders of pencil packs Number of orders 2. Receiving and storage Loads moved 3. Shipping of pencil packs to retailers Number of shipments Quantity of Cost Driver 900 4.500 1500 Cost per Unit of Cost Driver $100 per order $60 per load $70 per shipment Print Done i Addtional information - X For 2016, Grizzly buys 250,000 pencil packs at an average cost of $4 per pack and sells them to retailers at an average price of $10 per pack. Assume Grizzly has no fixed costs and no inventories. For 2017, retailers are demanding a 7% discount off the 2016 price. Grizzly's suppliers are only willing to give a 5% discount. Grizzly expects to sell the same quantity of pencil packs in 2017 as it did in 2016 orid 201 Print Done Grizzly Inc is a small distributor of mechanical pencils Oral Identities to three major activities and cost pools as ordering receiving and storage and shipping and reports the following details for 2016 mm (Click the icon to view the activity and cost pool details (click the icon to view the 2016 operating income Click the icon to view additional Information) Required Fint atering the soting price to retailers in 2017 The selling price per pack to retailers in 2017 Now determine the purchase price per packs of penis in 2017 The purchase prica per pack in 2017 Now we have determined the new selling price and purchase price for 2017 detamine the operating income for 2017. The calculate the per unit amounts for 2017 Recent Total Per Unit Revenues Ceb Puchas cost of pen poc Ordenaco Entrance en els and the continue to no question Gruzly Inc is a small distributor of mechanical pencils Grizzly identifies its three major activities and cost pools as ordering, receiving and storage and shipping and reports the following details for 2018 (Click the icon to view the activity and cost pool details (Click the icon to view the 2016 operating income) (Click the icon to view additional information Bequired Revenues Costs Purchase cost of pencil packs Ordering costs Receiving and storage Shipping Total costs Operating income How much must Gelrzly reduce its total cost and cost per unit if it is to earn the same target operating income in 2017 as it earned in 2016 and thereby eam is required rate of futurn on investment? In relating to the 2016 operating income, Gilezly will need to reduce its total costs by $ or per unit is to achieve its target operating come in 2017

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt

IFRS global edition

1-119-41959-4, 470534796, 9780470534793, 9781119419594 , 978-1119419617

Students also viewed these Accounting questions

Question

How did World War II shape Anna Freuds research and thought?

Answered: 1 week ago