Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: JIT Distributors Non-IT Distributors Sales orders 1,100 70 Sales calls Service calls so Average order size Manufacturing cost/unit 550 $125 Customer costs $3,580,000 Processing sales orders Selling goods Servicing goods 1,120,000 1,050,000 $5,750,000 Total Required: 1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for Required: 1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $150. Round calculations to the nearest dollar Non-JIT Sales (in units) Sales $ $ 605,000 90,750,000 2,875,000 $ $ 605,000 90,750,000 2,875,000 Allocation 2. Conceptual Connection: Calculate the customer cost per distributor type using Round the interim calculations to the nearest dollar JIT Non-IT 325,455 X Ordering costs Selling costs Service costs $ $ $ 3,254,545 X 560,000 700,000 $ $ $ 350,000 Total s 4,514,545 1,235,455 For non IT distributors by how much can the price be decreased without affecting customer profitability? Round your answer to the nearest cent. $ 4.26 X per unit 3. Assume that the IT distributors are simply imposing the frequent orders on Stillwater Designs. No formal discussion has taken place between JIT customers and Stillwater Designs regarding the supply of goods on a IT basis. The sales pattern has evolved over time. As an independent consultant, what would you suggest to Stillwater Designs' management