=+Sloan Moving Ltd transports household goods from one city to another within Australia. It measures quality of service in terms of:

(a) time required to transport goods;

(b) on-time delivery (within two days of agreed-upon delivery date); and

(c) number of lost or damaged shipments. Sloan Moving is considering investing in a new scheduling-and-tracking system costing $160000 per year, which should help it to improve performance with respect to items

(b) and (c). The following information describes Sloan Moving’s current performance and the expected performance if the new system is implemented: