Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: JIT Distributors Non-JIT Distributors Sales orders 1,000 100 70 70 Sales calls Service calls 350 175 Average order size 850 8,500 $125 $125 Manufacturing cost/unit Customer costs: Processing sales orders Selling goods $3,180,000 1,120,000 Servicing goods 1,050,000 Total $5,350,000 1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $150. Round calculations to the nearest dollar. Non-IT JIT 850,000 Sales (in units) 850,000 Sales 127,500,000 $ 127,500,000 Allocation 2,675,000 2,675,000 2. Conceptual Connection: Calculate the customer cost per distributor type using activity-based cost assignments. Round the interim calculations to the nearest dollar JIT Non-JIT 2,890,909.1 x $ Ordering costs Selling costs $ Service costs Total For non JIT distributors by how much can the price be decreased without affecting customer profitability? Round your answer to the nearest cent. per unit 3. Assume that the JIT distributors are simply imposing the frequent orders on Stillwater Designs. No formal discussion has taken place between JIT customers and Stillwater Designs regarding the supply of goods on a JIT basis. The sales pattern has evolved over time. As an independent consultant, what would you suggest to Stillwater Designs' management