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Question Help Grouse Inc. is a small distributor of mechanical pencils. Grouse identifies its three major activities and cost pools as ordering, receiving and storage,
Question Help Grouse Inc. is a small distributor of mechanical pencils. Grouse identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016: (Click the icon to view the activity and cost pool details.) For 2016, Grouse buys 250,000 pencil packs at an average cost of S3 per pack and sells them to retailers at an average price of $11 per pack. Assurro Grouse has no fixed costs and no inventories. Read the requirement. Begin by calculating the operating income. Then, calculate the per unit amounts. (Round the per unit amounts to the nearest cent.) Total Per Unit i Data Table Revenues Costs: Purchase cost of pencil packs Ordering costs Receiving and storage 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 600 5,000 1,500 Cost per Unit of Cost Driver $100 per order $60 per load $70 per shipment Shipping Total costs Operating income Print Done
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