Munoz Pet Supplies purchases its inventory from a variety of suppliers, some of which require a six$-$week lead time before delivering the goods. To ensure that she has a sufficient supply of goods on hand, Ms$.$ Leblanc, the owner, must maintain a large supply of inventory. The cost of this inventory averages $$21,500.$ She usually finances the purchase of inventory and pays a $12$ percent annual finance charge. Ms$.$ Leblanc's accountant has suggested that she establish a relationship with a single large distributor who can satisfy all of her orders within a two$-$week time period. Given this quick turnaround time, she will be able to reduce her average inventory balance to $$3,500.$ Ms$.$ Leblanc also believes that she could save $$2,300$ per year by reducing phone bills, insurance, and warehouse rental space costs associated with ordering and maintaining the larger level of inventory.

Required

b$.$ Based on the information provided, how much of Ms$.$ Leblanc's inventory holding cost could be eliminated by taking the accountant's advice?

Eliminated inventory holding cost

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