Exploiting Internal Linkages Woodruff Company is currently producing a snowmobile that uses five specialized parts. Engineering has proposed replacing these specialized parts with commodity parts, which will cost less and can be purchased in larger order quantities. Current activity capacity and demand (with specialized parts required) and expected activity demand (with only commodity parts required) are provided. Activities Activity Driver Activity Capacity Current Activity Demand Expected Activity Demand Material usage Number of parts 210,000 210,000 210,000 Installing parts Direct labor hours 41,000 41,000 32,800 Purchasing parts Number of orders 11,200 9,576 5,880 Additionally, the following activity cost data are provided: Material usage: $11 per specialized part used; $17 per commodity part; no fixed activity cost. Installing parts: $27 per direct labor hour; no fixed activity cost. Purchasing parts: Four salaried clerks, each earning a $48,000 annual salary; each clerk is capable of processing 2,800 purchase orders. Variable activity costs: $1.50 per purchase order processed for forms, postage, etc. Required: 1. Calculate the cost reduction produced by using commodity parts instead of specialized parts. Enter your answers as positive amounts. If required, round your answers to the nearest cent. Material usage cost reduction $fill in the blank 1 Labor usage cost reduction fill in the blank 2 Purchasing cost reduction fill in the blank 3 Total savings