Receiving and storage

Shipping

Telet sasts

Operiting tincomie

Requirement $2.$ For $2020,$ retallers are demanding a $4\%$ discount off the $2019$ price. Terra's suppliers are only wiling to give a $3\%$ discount. Terta expect iles in $2020$ as in $2019.$ If all other conts and cost$-$driver information remain the same, calculate Terra's operating income for $2020.$

Revenues

Costs:

Punchase cost of tiles

Ordering costs

$$

Receiving and storage

$$

$$

Shipping

Total conts

Operiting ticome

Requirement $3.$ Suppose further that Terre decides to make changes in its ordering and recelving$-$and$-$storing practices. By placing iong$-$run orfers with its

reduce the number of orders to $300$ and the cost per order to $$35$ per order. By redesigning the layout of the warehouse and reconfiguring the crates in whici

expects to reduce the number of fonds meved to $4,125$ and the cost per lond movad to $$38.$ wr Terta achleve its target operating income of $51\mathrm{.}12$ per tife in

Begin by calculating Terre's operating income, then the per unit amounts if the company makes these changes. $($Round the per unit amounts to the nearest

Operating income

Terra

to achieve its target operating income of $$1\mathrm{.}12$ per tile in $2020$

Data table

$\backslash$table$[[$Activity$,$Cost Driver,$\backslash$table$[[$Quantity of$],[$Cost Driver$]]],[1.$ Placing and paying for orders of marble tiles,Number of orders,$600],[2.$ Receiving and storage,Loads moved,$5,000],[3.$ Shipping of marble tiles to retailers,Number of shipments,$2,100]]$

Requirements

Calculate Terra's operating income for $2019.$

For $2020,$ retailers are demanding a $4\%$ discount off the $2019$ price. Terra's sup willing to give a $3\%$ discount. Terra expects to sell the same quantity of marble in $2019.$ If all other costs and cost$-$driver information remain the same, calculat operating income for $2020.$

Suppose further that Terra decides to make changes in its ordering and receivi practices. By placing long$-$run orders with its key suppliers, Terra expects to re number of orders to $300$ and the cost per order to $$35$ per order. By redesignin