As part of its promotional efforts, ABS grocery stores utilize weekly flyers at

its locations. At each of the 75 stores, the company produces an estimated

1,000 promotional flyers per week. Each store uses its own printing shop, and

each location incurs the same variable costs to use the machines. Installation

costs incurred to set up the machine for printing a new flyer, printing costs

(paper, ink, etc.), and maintenance costs comprise total production costs. On

average, monthly production costs are estimated to be: $1,000 for installation,

$3,000 for printing, and $1,000 for maintenance and are incurred at each

location. The management considers moving printing to one centralized

location. The company estimates that monthly installation costs for the single

machine will be $1,000. Printing costs of $3,000 will remain the same to print

1000 flyers for each of 75 stores. Maintenance costs of a single bigger

machine will be $10,000 per month, and distribution of flyers will cost

additional $14,000 a month. Will ABS stores be able to exhibit economies of

scale by moving printing to a centralized location? How much money will

they save each year?