MSS Creates scripts for hearing impaird people.the script is an electronic document of the audio converted to text by an individual called a scripter.

Scripters can create scripts in most languages.One of the growing requests for scripting is for audio produced in a language called Esperanto.MSS has hired a full time scripter who specializes in this task.The scripter annual salary is $49,000 and it is estimated that this individual has the potential of billing 1400 hours per year.MSS charges out this scripter time at $75 per hour.On average , there is enough work to keep the scripter busy 80% of the time(billable hours).total overhead attributable to this service is $15 per billable scripting hour.Fixed overhead for the company is $100,000 for the year and total billable scripting hours for LL SCRIPTRS IS 20,000 HOURS FOR THE YEAR.

MSP inc a company that specilaizes in Esperanto , has approached the CEO of MSS with an offer to take over MSS scripting of audio in Esperanto.It has offered to do this work on an hourly charge basis for a flat fee of $60 per hour.

If MSS accepts the offer from MSP, it wouldno longer require the services of the in -house acripter and would no longer incur associated variable cost.Based on the current billable hours of the scripter,what would the annual savings(cost) be if MSS accepts the offer