Requirement 1: Calculate eagles operating income for 2019, fill in the blanks in the chart please Then answer requirements 2 and 3 and provide all work for each requirement. Eagle Tiles is a small distributor of marble tiles. Eagle identifies its three major activities and cost pools as ordering, receivingand storage, and shipping, and it reports the following details for 2019:(Click the icon to view the details.)For 2019 Eaglebuys 220,000marble tiles at an average cost of $4per tile and sells them to retailers at an average price of $6pertile. Assume Eaglehas no fixed costs and no inventories.Requirement 1. Calculate Eagle's operating income for 2019.RevenuesCosts:Purchase cost of tilesOrdering costsReceiving and storageShippingTotal costsOperating incomeData tableActivityPlacing and paying for orders of marble1. tiles2. Receiving and storage3. Shipping of marble tiles to retailersRequirements-✗Cost DriverQuantity orCost DriverCost per unit OTCost DriverNumber of orders900$80 per orderLoads moved4,300$50 per loadNumber ofshipments1,700 $40 per shipment☑p me1.2.Calculate Eagle's operating income for 2019.For 2020, retailers are demanding a 4% discount off the 2019 price. Eagle's suppliers are onlywilling to give a 3% discount. Eagle expects to sell the same quantity of marble tiles in 2020 asin 2019. If all other costs and cost-driver information remain the same, calculate Eagle'soperating income for 2020.3. Suppose further that Eagle decides to make changes in its ordering and receiving-and-storingpractices. By placing long-run orders with its key suppliers, Eagle expects to reduce thenumber of orders to 600 and the cost per order to $40 per order. By redesigning the layout ofthe warehouse and reconfiguring the crates in which the marble tiles are moved, Eagleexpects to reduce the number of loads moved to 3,425 and the cost per load moved to $48.Will Eagle achieve its target operating income of $0.41 per tile in 2020? Show yourcalculations.er

Operating income is the income available after paying for the cost of goods sold and operating cost…

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 2019Eaglebuys 220,000marble tiles at an average cost of $4per tile and sells them to retailers at an average price of $6per ile. Assume Eaglehas no fixed costs and no inventories. 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 Data table Cost Driver Quantity of Cost Driver Number of orders 900 Loads moved Activity Placing and paying for orders of marble 1. tiles 2. Receiving and storage 3. Shipping of marble tiles to retailers Requirements Number of shipments Cost per unit of Cost Driver $80 per order 4,300 $50 per load 1,700 $40 per shipment -

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 2019Eaglebuys 220,000marble tiles at an average cost of $4per tile and sells them to retailers at an average price of $6per ile. Assume Eaglehas no fixed costs and no inventories. 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 Data table Cost Driver Quantity of Cost Driver Number of orders 900 Loads moved Activity Placing and paying for orders of marble 1. tiles 2. Receiving and storage 3. Shipping of marble tiles to retailers Requirements Number of shipments Cost per unit of Cost Driver $80 per order 4,300 $50 per load 1,700 $40 per shipment -

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Requirement 1: Calculate eagles operating income for 2019, fill in the blanks in the chart please Then answer requirements 2 and 3 and provide all work for each requirement.

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 Eaglebuys 220,000marble tiles at an average cost of $4per tile and sells them to retailers at an average price of $6per
tile. Assume Eaglehas no fixed costs and no inventories.
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
Data table
Activity
Placing and paying for orders of marble
1. tiles
2. Receiving and storage
3. Shipping of marble tiles to retailers
Requirements
-
✗
Cost Driver
Quantity or
Cost Driver
Cost per unit OT
Cost Driver
Number of orders
900
$80 per order
Loads moved
4,300
$50 per load
Number of
shipments
1,700 $40 per shipment
☑
p me
1.
2.
Calculate Eagle's operating income for 2019.
For 2020, retailers are demanding a 4% discount off the 2019 price. Eagle's suppliers are only
willing to give a 3% discount. Eagle expects to sell the same quantity of marble tiles in 2020 as
in 2019. If all other costs and cost-driver information remain the same, calculate Eagle's
operating income for 2020.
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 3,425 and the cost per load moved to $48.
Will Eagle achieve its target operating income of $0.41 per tile in 2020? Show your
calculations.
er

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