Read, understand, analyze the case and answer the given questions

Ali, logistics manager of the ABC Company, has considered replacing the firm's manual customer orde management system with electronic ordering, a web$-$based application. He estimates the current syster including labor, costs $$3\mathrm{.}75$ per order for transmission and processing when annual order volume is und $35,000.$ Should the order volume equal or exceed $36,000$ in any given year, Mr$.$ McNeely will have to hire additional customer service representative to assist order reception in the manual process. This would ra the variable cost to $$4\mathrm{.}15$ per order. He has also estimated the rate of errors in order placement and trans to be $14/1,000$ orders.A web$-$based application would cost $$150,000$ upfront to implement and variable costs are determined to be $$0\mathrm{.}75$ per order regardless of volume. A web$-$based application could acquire and maintain order information with an error rate of $4/1,000$ orders. A web$-$based specialist would be required to maintain the system at all times as well. Her salary is $$30,000$ in the first year and increases $3$ percent each year thereafter.

Order errors cost $$7\mathrm{.}00$ per occurrence on average to correct in the manual system. Web$-$based errors cost $$9\mathrm{.}00$ on average to correct since the specialist inspects the system for flaws on most occasions.

Required:

A$-$ Calculation

a$1.$ If the firm expects order volume over the next five years to be $25,000,27,000,30,000,36,000,$ and $38,000,$ annually how much is the cumulative total cost of the manual system? $(5$ marks$)$

a$2.$ If the firm expects order volume over the next five years to be $25,000,27,000,30,000,36,000,$ and $38,000,$ annually how much is the cumulative cost of the EDI system? $(5$ marks$)$

a$3.$ Would a web$-$based system pay for itself within the first five years? $(2$ marks$)$