Easybuy.com.au sells Computer Peripherals and software over the internet. A recent article in a trade journal has caught the attention of management, given that the company has experienced higher than usual inventory$-$handling costs. The article noted that similar firms have purchasing, warehousing and distribution costs that average $9$ per cent of sales, which is attractive when compared with Easybuy.com.au$$s results for the past year.

The following information is available:

The following information is available:

Cost Percentage of cost driver

activity Percentage of

cost driver

Activity $($Cost$)$

Cost driver driver quantity for Computer peripherals activity for software

Incoming receipts

Number of

$($$$450000)$ purchase orders $350040\%60\%$

Warehousing $($$$680000)$ Number of inventories moves

$8500$

$70\%$

$30$

Outgoing shipments

Number of

$($$$550000)$ shipments $160007525$

Please refer to image for clear in this table part:

Computer peripherals sales totaled $$6800000$ and software sales totaled $$8000000.$ A review of the company$$s activities found various inefficiencies with respect to the outgoing shipments of computer peripherals and incoming receipts of software. These inefficiencies resulted in an extra $800$ outgoing shipments moves and $550$ incoming receipts, respectively. Required:

$1.$ How much did non$-$value$-$added activities cost Brainfodder.net.au this past year?

$2.$ Will the elimination of non$-$value$-$added activities allow Brainfodder.net.au to achieve purchasing, warehousing and distribution costs that average $9$ per cent of sales for each of the product lines? Show calculations.

$3.$ Do either of the two product lines require additional cost cutting to achieve the target percentage? If so$,$ how much additional cost cutting is needed, and what tools $($methods$)$ might the company use to achieve the cuts?

Please give me the answers nice and correct with the correct explanation to understand it easily. Thank you very much