Inc. is a small distributor of mechanical pencils. Guppy identifies e major activities and cost pools as ordering, receiving prage, and shipping, and it reports the following details for 2019: lick the icon to view the activity and cost pool details.) by calculating the operating income. Then, calculate the per unit amounts. (Round the per unit amounts to the nearest cent.) Per Unit ues chase cost of pencil packs dering costs ceiving and storage pping otal costs ting income For 2019, Guppy buys 250,000 pencil packs at an average cost of $3 per pack and sells them to retailers at an average price of $7 per pack. Assume Guppy has no fixed costs and no inventories. Calculate Guppy's operating income for 2019. Total
Inc. is a small distributor of mechanical pencils. Guppy identifies e major activities and cost pools as ordering, receiving prage, and shipping, and it reports the following details for 2019: lick the icon to view the activity and cost pool details.) by calculating the operating income. Then, calculate the per unit amounts. (Round the per unit amounts to the nearest cent.) Per Unit ues chase cost of pencil packs dering costs ceiving and storage pping otal costs ting income For 2019, Guppy buys 250,000 pencil packs at an average cost of $3 per pack and sells them to retailers at an average price of $7 per pack. Assume Guppy has no fixed costs and no inventories. Calculate Guppy's operating income for 2019. Total
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter2: Descriptive Statistics
Section: Chapter Questions
Problem 3P: Ohio Logistics manages the logistical activities for firms by matching companies that need products...
Related questions
Question
![Data table
Activity
1. Placing and paying for orders of
pencil packs
2. Receiving and storage
3. Shipping of pencil packs to
retailers
Cost Driver
Number of orders
Loads moved
Number of shipments
Quantity of Cost per Unit of Cost
Driver
Cost Driver
800
4,500
1,500
$100 per order
$60 per load
$70 per shipment](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54a4597e-3d99-4c20-8113-3401a2a6115b%2F6365b68d-74fb-483d-b210-9e45efc8bea4%2Fkwjt2q_processed.png&w=3840&q=75)
Transcribed Image Text:Data table
Activity
1. Placing and paying for orders of
pencil packs
2. Receiving and storage
3. Shipping of pencil packs to
retailers
Cost Driver
Number of orders
Loads moved
Number of shipments
Quantity of Cost per Unit of Cost
Driver
Cost Driver
800
4,500
1,500
$100 per order
$60 per load
$70 per shipment
![Guppy Inc. is a small distributor of mechanical pencils. Guppy 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 activity and cost pool details.)
Revenues
Costs:
Begin by calculating the operating income. Then, calculate the per unit amounts. (Round the per unit amounts to the nearest cent.)
Purchase cost of pencil packs
Ordering costs
Receiving and storage
Shipping
Total costs
Operating income
Total
C
Per Unit
For 2019, Guppy buys 250,000 pencil packs at an average cost
of $3 per pack and sells them to retailers at an average price of
$7 per pack. Assume Guppy has no fixed costs and no
inventories.
Calculate Guppy's operating income for 2019.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54a4597e-3d99-4c20-8113-3401a2a6115b%2F6365b68d-74fb-483d-b210-9e45efc8bea4%2Flokkmg_processed.png&w=3840&q=75)
Transcribed Image Text:Guppy Inc. is a small distributor of mechanical pencils. Guppy 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 activity and cost pool details.)
Revenues
Costs:
Begin by calculating the operating income. Then, calculate the per unit amounts. (Round the per unit amounts to the nearest cent.)
Purchase cost of pencil packs
Ordering costs
Receiving and storage
Shipping
Total costs
Operating income
Total
C
Per Unit
For 2019, Guppy buys 250,000 pencil packs at an average cost
of $3 per pack and sells them to retailers at an average price of
$7 per pack. Assume Guppy has no fixed costs and no
inventories.
Calculate Guppy's operating income for 2019.
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