Installing parts hours 28,000 28,000 22,400 Purchasing Number of parts 27,018 orders 31,600 16,590 Additionally, the following activity cost data are provided: Material usage: $26 per specialized part used; $30 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 $40,000 annual salary; each clerk is capable of processing 7,900 purchase orders. Variable activity costs: $1.80 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 Labor usage cost reduction Purchasing cost reduction Total savings 2. Suppose that 79,000 units are being produced and sold for $6,200 per unit and that the price per unit will be reduced by the per-unit savings. What is the new pric for the configured product? If required, round your intermediate calculations and fi answer to the nearest cent. 3. What if the expected activity demand for purchase orders was 13,430? How w this affect the answers to Requirements 1 and 2? If required, round your interme calculations and final answers to the nearest cent. by $ to $ Total savings New price by $