Pack$-$and$-$Go$,$ a new competitor to FedEx and UPS, does intra$-$city package deliveries in seven major metropolitan areas. The performance of Pack$-$and$-$Go is measured by management as $(1)$ delivery time $($relative to budgeted delivery time$),(2)$ on$-$time delivery rates $($defined as agreed$-$upon delivery date$/$time plus or minus a specified cushion$),$ and $(3)$ percentage of lost or damaged deliveries. In response to competitive pressures, Pack$-$and$-$Go is evaluating an investment in new technology that would improve customer service and delivery quality, particularly in terms of items $2$ and $3$ above. The annual cost of the new technology, for each of the seven metropolitan areas serviced by Pack$-$and$-$Go$,$ is expected to be $$80,000.$ You have gathered the following information regarding delivery performance under both existing operations and after implementing the new technology:

ItemDecision AlternativeCurrent SystemAfter Implementing New TechnologyOn$-$time delivery rate$80\%95\%$Variable cost per package lost or damaged$ $30$$ $30$Allocated fixed cost per package lost or damaged$ $10$$ $10$Annual number of packages lost or damaged$300100$