Frank Shorter, a recent PSU SCIS graduate, works for a company that distributes Big Ten licensed clothing to over $1,500$ customer locations. He believes there is an opportunity to improve cost and service by creating a picking zone operation vs each associate traveling through the warehouse picking one order at a time. Based on his observations below are the key elements of his business case. What is the potential savings based on Frank$$s information $($rounded to the nearest $$1,000)?$ Note: Round associates to nearest whole number

Total pick time per year $120,000$ hours

Total Actual Hours worked per associate$/$year $1800$ hours

Annual Wages per associate $$48,000$

Fringe Benefits $36\%$

Current productivity $65\%$

Projected Productivity $85\%$

Group of answer choices

$$1,690,000$

$$1,632,000$

$$914,000$

$$1,056,000$