Question: I already submitted this question and got this answer but the book is showing this is incorrect, not sure if it is a rounding error.

I already submitted this question and got this answer but the bookis showing this is incorrect, not sure if it is a roundingI already submitted this question and got this answer but the book is showing this is incorrect, not sure if it is a rounding error. Please verify.

For 2016, they buy 260,000 tiles.

Begin by calculating Crazing's operating income, then the per unit amounts if the company makes these changes. (Round the per unit amounts to the nearest cent.)

Total

Revenues

$1,235,000

Costs:

Purchase cost of tiles

$748,800

Ordering costs

20,000

Receiving and storage

133,950

Shipping

60,000

Total costs

962,750

Operating income

$272,250

Per Unit

4.75

2.88

.08

.52

.23

3.70

1.05

Crazing Tiles is a small distributor of marble tiles. Crazing identifies its three major activities and cost pools as ordering, receiving and storage, and shipping. and it reports the following details for 2016 EEE Click the icon to view the details For 2016, Crazing buys 260,000 marble tiles at an average cost of S3 per e and sells them to retailers at an average price of S5 per e. Assume Crazing has no fixed costs and no inventories Read the reguirements. Data Table Requirement 1. Calculate Crazing's operating income for 2016. 1,300,000 Revenues Quantity of Cost per Unit Activity Cost Driver Cost Driver of Cost Driver Purchase cost of tiles 780,000 1. Placing and paying for orders of marble tiles Number of orders 800 $80 per order 64,000 Ordering costs Loads moved 2. Receiving and storage 4,400 $40 per load Receiving and storage 176,000 3. Shipping of marble tiles to retailers Number of shipments 2,000 $30 per shipment 60.000 Shipping 1.080.000 Total costs Print Done 220.000 Operating income Requirement 2. For 2017. retailers are demanding a 5% discount off the 2016 price. Crazing's suppliers are only willing to give a 4% discount. Crazing expects to sell the same quantity of marble tiles in 2017 in 2016. If all other costs and cost-driver information remain the same, calculate razing's operating income for 2017 1,235,000 Revenues Costs Purchase cost of tiles 748,800 64,000 Ordering costs Receiving and storage 176,000 60.000 Shipping 1.048.800 Total costs 86.200 Operating income

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