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:

Required: Caldwell has estimated that it can reduce the number of purchase orders to 750 and can decrease the cost of each shipment by $10 with minor changes in its operations. Any further cost savings must come from reengineering the warehousing processes. What is the maximum cost (i.e., target cost) for warehousing if the rm desires to earn the same amount of profit next year? _:| Purchasing Number of purchase orders 1,070 $157 per order Warehousing Number of moves 8,700 37 per move Distributing Number of shipments 570 87 per shipment