Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-IT distributors. The JIT 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 Non-JIT Distributors Distributors Sales orders 1,200 120 Sales calls 70 70 Service calls 175 Average order size 350 650 $125 6,500 $125 Manufacturing cost/unit Customer costs: Processing sales orders Selling goods Servicing goods $3,080,000 1,120,000 1,050,000 Total $5,250,000 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. JIT Non-JIT Sales (in units) 780,000 Sales 780,000 $117,000,000 $ 2,625,000 $117,000,000 $ 2,625,000 Allocation 2. Conceptual Connection: Calculate the customer cost per distributor type using activity-based cost assignments. Round the interim calculations to the nearest dollar JIT Non-JIT 280,000 Ordering costs Selling costs Service costs 560,000 $ $ $ $ 2,800,000 X 560,000 700,000 4,060,000 X $ $ $ 350,000 Total 1,190,000 x For non JIT distributors by how much can the price be decreased without affecting customer profitability? Round your answer to the nearest cent. $ 1.84 per unit