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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.