Help please!

Caldwell Supply. a wholesaler, has determined that its operations have three primary activities: purc hasing. warehousing. and distributing. The rm reports the following operating data for the year just completed: Quantity of Cost Cos-I: per Unit of Activity Coat Driver Driver Cunt Driver Purchasing Number of purchase orders 1,120 $162 per order Warehousing Number of moves 8,100 31 per move Distributing Number of shipments 620 92 par shipment Caldwell buys 101,200 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 $251,200 for the year. Caldwell's customers are demanding a 11% discount for the coming year. The company expects to sell the same amount it 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 800 and can decrease the cost of each shipment by $15 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 prot next year? _:|