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Way Over Par Inc buys and sells a portable golf driving net. The Company has 3 major cost pools-ordering, receiving, and shipping. Details of these

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Way Over Par Inc buys and sells a portable golf driving net. The Company has 3 major cost pools-ordering, receiving, and shipping. Details of these cost pools are shown below: Activity Cost Driver Quantity of Cost Driver Cost per unit of Cost Driver Placing orders Receiving Shipping number of orders loads moved number of shipments 100 2,000 500 $25 per order $35 per load $40 per shipment For 2019, Way Over Par Inc. purchases 5,000 nets at an average cost of $20 per net and sells them to golf retailers at an average price of $50 per net. There are no fixed costs or inventories. Calculate the Company's operating income for 2019. 2. In 2020 the retailers that Way Over Par Inc sells to demand an 8% price reduction. Way Over Par Inc goes back to their supplier and asks for an 8% reduction in the supplier's price. The suppliers will only give a reduce If all other items remain the same, calculate the expected operating income for 2020

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