Post a listing of recommendations - with full explanations - regarding areas of possible cost savings for Cruisers, Inc. Include recommendations for at least four of the six activities, and your targeted savings is at least $1 million (~ 25%). Be specific and explain how the cost savings will be achieved. I.e., what would Cruisers do differently to achieve each of the cost savings? Focus on activities; focus on the cost drivers. E.g., how can they improve or streamline processes? How might they improve worker performance or efficiency? One useful approach would be to consider the volume of each of the activities and break that down into activities per week or per day and then respond to that. I.e., do those volumes seem excessive, and if so, how could they reduce them?So that your recommendations are clear, list each in a separate paragraph.

Estimated Annual Cost Estimated Total Activity Predetermined Rate per Unit of Activity Activity (Cost Driver) Production order preparation Hull and deck mold setup Raw material acquisition Material handling Quality inspection Clean up and waste disposal Total manufacturing overhead $ 135,000 2,140,000 650,000 450,000 750,000 75,000 $4,200,000 180 orders 1,000 setups 2,600 receipts 9,000 moves 6,000 inspections 250 loads $ 750/order 2,140/setup 250/receipt 50/move 125/inspection 300/load