4. J. Q. is aggressive and is going to recommend that his father cancel the contract with one of the warehouses and give that business to a competing warehouse in the same city. J. Q. feels that when word of this gets around, the other warehouses they use will “shape up.” Which of the seven should J. Q. recommend be dropped? Why? I would recommend cancelling the Denver warehouse contract. From the information I gather in 2016 Denver had the lowest units shipped out, which 26.6% for the units income went to warehouse cost which Denver came in first for the highest cost. In the first five months of 2017 Denver's unit income to warehouse cost rose 5.5% from last years five month evaluation. Along with production coming to a halt due to in house strike. I believe this is the best choice. 5. The year 2017 is nearly half over. J. Q. is told to determine how much the firm is likely to spend for warehousing at each of the eight warehouses for the last six months in 2017. Do his work for him. Estimated warehouse cost for the last six months of 2017: Atlanta $107703 Boston $30903 Chicago $99596 Denver $11367 Fargo $5303 Los Angeles $50223 Portland $29630 St. Louis $44773 6. When comparing the 2016 figures with the 2017 figures shown in the table, the amount budgeted for each warehouse in 2017 was greater than actual 2016 costs. How much of the increase is caused by increased volume of business (units shipped) and how much by inflation?