Currently, your company ships cases of product directly from your factory in Chicago to individual customers in the Los Angeles area. Each individual shipment averages 2300 pounds at an LTL freight rate of $46.55 per hundredweight. Your firm currently moves approximately 32,000 shipments to Los Angeles each year. You have been approached by a manager who wants to consider a zone skipping strategy to move the shipments. They have determined that the company can consolidate the products and ship them using a truckload carrier to a warchouse near Los Angeles. The TL rate would be $15.85 per hundredweight. At the Los Angeles warehouse, the shipments would be broken down and shipped to their final destination by a local LTL carrier. The LTL rate would be S18.95 per hundredweight. Calculate the cost of each strategy. What would be the maximum yearly price that you could pay for the Los Angeles warehouse to make the zone skipping idea a successful plan? (11 points) To help explain the impact the warehouse has on the system costs, also provide a short answer to the following questions. Be clear on the answers and don't just copy material from the book. 2] Why do inventory costs increase as the number of warehouses in a system increase? (3 3] Why do transportation costs initially decrease as the number of warehouses in a system 4 Why do transportation costs eventually increase as the number of warehouses increase? (3 points) increase? (3 points) points)