Caldwell Supply, a wholesaler, has determined that its operations have three primary activities: purchasing, warehousing, and distributing. The firm reports the following operating data for the year just completed: Quantity of Cost per Unit of Cost Co 1,010 8,100 510 Activity Purchasing Warehousing Distributing Cost Driver Number of purchase orders er $151 per order 31 per move 81 per shipment Number of moves Number of shipments Caldwell buys 100,100 units at an average unit cost of $11 and sells them at an average unit price of $21. The firm also has fixed operating costs of $250,100 for the year Caldwell's customers are demanding a 11% discount for the coming year. The company expects to sell the same amount if the demand for price reduction can be met. Caldwell's suppliers, however, are willing to give only a 3% discount Required: Caldwell has estimated that it can reduce the number of purchase orders to 690 and can decrease the cost of each shipment by $4 with minor changes in its operations. Any further cost savings must come from reengineering the warehousing processes. What is the maximum cost (i.., target cost) for warehousing if the firm desires to earn the same amount of profit next year? Maximum cost LO