Question: = Homework: Chapter 14 Pricing Decisions Question 3, E14-19 (similar to) Part 1 of 5 HW Score: 9.48%, 1.14 of 12 points Points: 0 of
= Homework: Chapter 14 Pricing Decisions Question 3, E14-19 (similar to) Part 1 of 5 HW Score: 9.48%, 1.14 of 12 points Points: 0 of 1 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 2019: (Click the icon to view the details.) For 2019, Eagle buys 290,000 marble tiles at an average cost of $2 per tile and sells them to retailers at an average price of $7 per tile. Assume Eagle has no fixed costs and no inventories. Read the requirements. Requirement 1. Calculate Eagle's operating income for 2019. Revenues Costs: Purchase cost of tiles Ordering costs Receiving and storage Shipping Total costs Operating income Save Data table Activity 1. Placing and paying for orders of marble tiles 2. Receiving and storage 3. Shipping of marble tiles to retailers Cost Driver Quantity of Cost Driver Cost per Unit of Cost Driver Number of orders 800 $70 per order Loads moved 4,400 $50 per load Number of shipments 2,100 $30 per shipment Print Done
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
