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Can I get some help with this Caldwell Supply, a wholesaler, has determined that its operations have three primary activities: purchasing, warehousing, and distributing. The

Can I get some help with this

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Caldwell Supply, a wholesaler, has determined that its operations have three primary activities: purchasing, warehousing, and distributing. The rm reports the following operating data for the yearjust completed: Quantity of Cast Cost per Unit of Activity Cost Driver Driver Cost Driver Purchasing Number of purchase orders 1.856 $155 per order Warehousing Number of moves 3.5% 3.5 per move Distributing Number of shipments 556 BE- per shipment Caldwell buys 100.500 units at an average unit cost of $15 and sells them at an average unit price of $25. The firm also has xed operating costs of $250,500 for the year. Caldwell's customers are demanding a 15% 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 9% discount Required: Caldwell has estimated that it can reduce the number of purchase orders to 730 and can decrease the cost of each shipment by $3 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 firm desires to earn the same amount of prot next year? _:|

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