Required information [The following information applies to the questions displayed below] BookWeb, Inc., sells books and software over the Internet. A recent article in a trade journal has caught the attention of management because the company has experienced soaring inventory handling costs. The article notes that similar firms have purchasing, warehousing, and distribution costs that average 13 percent of sales. Thirteen percent is attractive to BookWeb management when compared to its results for the past year, shown in the following table. % of Cost Cost Driver Driver for % of Cost Driver Activity (cost) Cost Driver Quantity Books for Software Incoming receipts Number of ($300, 000) purchase orders 2, 090 70% 30% Warehousing Number of ($360, 000) inventory moves 9, 090 80% 20% Shipments Number ($225, 000) of shipments 15, 090 25% 75% Book sales revenue totaled $3,900,000 and software sales revenue totaled $2,600,000. A review of the company's activities found various inefficiencies with respect to the warehousing of books and the outgoing shipments of software. In particular, book misplacements resulted in an extra 550 moves and software had 250 incorrect shipments. e-1. Do either of the product lines require additional cost cutting to achieve the target percentages? e-2. How much additional cost cutting is needed to achieve the target percentages