8. Suppose you sign a contract with a vendor that gives most of your raw material purchases to this one vendor (supplier). This will simplify your purchasing and receiving operations. You estimate that by using one major vendor the total number of purchase orders will drop to 30 from 400 and the total number of incoming shipments will drop to 500. a) If you use a traditional volume-based approach which assumes that overhead costs vary only with direct labor cost what would be your estimate of the total cost savings by going to one supplier? b) Alternatively, assume you use the ABC system. What is your estimate of total cost savings by going to a one supplier system? 9. Which ABC cost driver applies overhead costs to products in the closest proportion to the application of overhead costs to products using the traditional labor based method. Hint: compute consumption ratios. Display analysis. 10. Suppose we determine that a product is not protable after implementing ABC analysis. If we drop the product will all the products costs go away, or are we required to take additional actions? Explain. 11. Are product costs computed using ABC completely accurate? Explain