Tons:

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Requirement $2.$ For $2020,$ retallers are demanding a $4\%$ discount off the $2019$ price. Terra's suppliers are only willing to give a $3\%$ discount. Terra expects to sell the sarne quantity of marbile

Revenues

Costs:

Punchase cost of tiles

$$

Ordering costs

Receiving and storage

$$

Shipping

Total costs

Dperating income

Requirement $3.$ Suppose further that Terrs decides to make changes in its ordering and receling$-$and$-$storing practoss. By placing long$-$nun onders with its key suppliers, Terra expects to reduce the number of orders to $300$ and the cost per order to $$35$ per order. By redesigring the libyout of the warehouse and reconfiguring the crates in which the marble tiles are moved, Terr Begin by calculating Terre's operating income, then the per unil amounts if the company makes these changes. $($Round the per unit amounts to the nearest cent.$)$

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$]],\backslash$table$[[$Cost per Unit of$],[$Cost Driver$]]],[1.$ Placing and paying for orders of marble tiles,Number of orders,$600,$$$70$ per order$],[2.$ Receiving and storage,Loads moved,$5,000,$$$40$ per load$],[3.$ Shipping of marble tiles to retailers,Number of shipments,$2,100,$$$50$ per shipment$]]$

Requirements

Calculate Terra's operating income for $2019.$

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

Suppose further that Terra decides to make changes in its ordering and receiving$-$and$-$storing practices. By placing long$-$run orders with its key suppliers, Terra expects to reduce the number of orders to $300$ and the cost per order to $$35$ per order. By redesigning the layout of the warehouse and reconfiguring the crates in which the marble tiles are moved, Terra expects to reduce the number of loads moved to $4,125$ and the cost per load moved to $$38.$ Will Terra achieve its target operating income of $$1\mathrm{.}12$ per tile in $2020?$ Show your calculations.