Question

Mastic Tiles is a small distributor of marble tiles. Mastic 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, Mastic buys 270,000 marble tiles at an average cost of $2 per tile and sells them to retailers at an average price of $7 per tile. Assume Mastic has no fixed costs and no inventories. Read the requirements Requirement 1. Calculate Mastic's operating income for 2016 Revenues Costs: Purchase cost of tiles Ordering costs Receiving and storage Shipping Total costs Operating income

Answer 1

Masti is fex perating Calulatien aALeme 18,90,000 93000D ) A Reuenuus Cost Punihase ost 230,000 X 540,002 Oadeing Lest (500 x60) Receiving 4 stozage( 4900x30). Shipping 1800x 40) Total 30,000 4s,00D F2000 383 00D 003,00 0 Lost Operating inuemi (A-B Opez ating 1376600 Beuenu 30,000X 6.5) (-6%) Cost: Purchase iot 270,000 xT:9 4) 2-3%. 523800 Oding Lest Raceixing etoage Shpping 30,000 45000 2000 870 800- 870 800 To tal Cost 9058 00 Openaling

perating iniemne xcvisien zdeing esi4 3evivriog age Lest দीय Reuenu 230,000 x658) 3766 00 Cost Pusuhase est (2t0.000144) 593800 Lost200x 30) Oxdering BODO Reeiing sterage 4025 a 42) 193200 Shupping 2000 795000 Total operating ineme १६।6०० No units eperaling inenas tile 3.6356 Yes, Mastic tácget 343opating acheiues he iúniemu Retile

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