Hi. Could you help me with this? I didn't get the correct answer.

Thanks.

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 Cost Cost per Unit Activity Cost Driver Driver of Cost Driver . Number of Purchasing purchase orders 1,140 $164per order Warehousing Number of moves 8,300 33 per move . . . . per Distributing Number of shipments 640 94 shipment l Caldwell buys 101,400 units at an average unit cost of $13 and sells them at an average unit price of $23. The rm also has xed operating costs of $251,400 for the year. Caldwell's customers are demanding a 13% 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 6% discount. Required: Caldwell has estimated that it can reduce the number of purchase orders to 820 and can decrease the cost of each shipment by $17 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 yea r? _:|