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Eagle Tiles is a small distributor of marble tiles. Eagle 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 details.) For 2016. Eagle buys 300,000 marble tiles at an average cost of $4 per tile and sells them to retailers at an average price of $6 per tile. Assume Eagle has no fixed costs and no inventories. Read the requirements. i Data Table Requirement 1. Calculate Eagle's operating income for 2016. Revenues 1800000 Quantity of Cost per Unit of Costs: Activity Cost Driver Cost Driver Cost Driver Purchase cost of tiles 1200000 1. Placing and paying for orders of marble tiles Number of orders 900 $80 per order Ordering costs 72000 2. Receiving and storage Loads moved 5,000 $50 per load Receiving and storage 250000 3. Shipping of marble tiles to retailers Number of shipments 1,800 $30 per shipment Shipping 54000 Total costs 1576000 i Requirements Operating income 224000 2016. If Requirement 2. For 2017, retailers are demanding a 6% discount off the 2016 price. Eagle's sup all other costs and cost-driver information remain the same, calculate Eagle's operating income fo 1. 2. Revenues Costs: Purchase cost of tiles Calculate Eagle's operating income for 2016. For 2017, retailers are demanding a 6% discount off the 2016 price. Eagle's suppliers are only willing to give a 4% discount. Eagle expects to sell the same quantity of marble tiles in 2017 as in 2016. If all other costs and cost-driver information remain the same, calculate Eagle's operating income for 2017. Suppose further that Eagle decides to make changes in its ordering and receiving-and-storing practices. By placing long-run orders with its key suppliers, Eagle expects to reduce the number of orders to 600 and the cost per order to $40 per order. By redesigning the layout of the warehouse and reconfiguring the crates in which the marble tiles are moved, Eagle expects to reduce the number of loads moved to 4,125 and the cost per load moved to $48. Will Eagle achieve its target operating income of $0.58 per tile in 2017? Show your calculations. Ordering costs Enter any number in the edit fields and then continue to the next question. Requirement 2. For 2017, retailers are demanding a 6% discount off the 2016 price. Eagle's suppliers are only willing to give a 4% discount. Eagle expects to sell the same quantity of marble tiles in 2017 as in 2016. If all other costs and cost-driver information remain the same, calculate Eagle's operating income for 2017. Revenues Costs: Purchase cost of tiles Ordering costs Receiving and storage Shipping Total costs Operating income Requirement 3. Suppose further that Eagle decides to make changes in its ordering and receiving-and-storing practices. By placing long-run orders with its key suppliers, Eagle expects to reduce the number of orders to 600 and the cost per order to $40 per order. By redesigning the layout of the warehouse and reconfiguring the crates in which the marble tiles are moved, Eagle expects to reduce the number of loads moved to 4,125 and the cost per load moved to $48. Will Eagle achieve its target operating income of $0.58 per tile in 2017? Show your calculations. Begin by calculating Eagle's operating income, then the per unit amounts if the company makes these changes. (Round the per unit amounts to the nearest cent.) Total Per Unit Revenues Costs: Purchase cost of tiles Ordering costs Receiving and storage Shipping Total costs Operating income Eagle V to achieve its target operating income of $0.58 per tile in 2017. Enter a will be able ields and then continue to the next question. will not be able