$1.$ Your boss is interested in web$-$based ordering $($WBO$),$ a new technology application

that facilitates easier communication between supply chain partners. She believes

that adopting WBO will reduce the cost of placing an order with a key vendor from

$$15\mathrm{.}00$ to $$0\mathrm{.}75.$ You have consistently been using the part, which takes the vendor

two weeks to supply, at a rate of $1,000$ units per month $($with a standard deviation of

$100$ units$).$ The annual cost of holding this item in inventory is $$5.$ Your boss tells

you that she plans to pay for the WBO system with the annual savings in inventory

costs $($holding and ordering$)$ attributed to this one item.

How much is your boss implying that she is willing to spend on the WBO system on

an annual basis?