Sales volume has been dropping at La Cross Publishing Company. During this time, however, the Shipping Department manager has been under severe financial constraints. The manager knows that most of the Shipping Department's effort is related to pulling inventory from the warehouse for each order and performing the paperwork. The paperwork involves preparing shipping documents for each order. Thus, the pulling and paperwork effort associated with each sales order is essentially the same, regardless of the size of the order. The Shipping Department manager has discussed the financial situation with senior management. Senior management has responded by pointing out that sales volume has been dropping, so that the amount of work in the Shipping Department should be dropping. Thus, senior management told the Shipping Department manager that costs should be decreasing in the department. The Shipping Department manager prepared the following information:

Given this information, how would you respond to seniormanagement?

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Sales Number of Sales Volume per Order Month Volume Customer Orders January February March $168,000 165,600 160,600 150,000 149,150 700 240 720 230 730 220 April May June July August 750 200 785 190 148,000 800 185 147,600 820 180 147,000 840 175