Gonzalo Inc. is a small distributor of mechanical pencils. Gonzalo identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2017:

For 2017, Gonzalo buys 250,000 pencil packs at an average cost of $5.76 per pack.
Gonzalo plans to use cost-plus pricing.
Calculate the prospective selling price (1) if Gonzalo marks up the purchase costs of the pencil packs by 33% and (2) if Gonzalo marks up the full cost of the pencil packs by 7%.

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Activity 1. Placing and paying for orders of pencil packs 2. Receiving and storage 3. Shipping of pencil packs to retailers Cost Driver Quantity of Cost Driver Cost per Unit of Cost Driver Number of orders 400 $75 per order Loads moved 3,500 $50 per load Number of shipments 1,500 $80 per shipment