Savant Systems currently produces an airplane braking system with 15 parts. A new configuration for the braking system that requires only 16 parts has been designed. Current activity capacity and expected activity capacity are as follows: Activity Activity Driver Activity Capacity Current Activity Demand Expected Activity Demand Material usage Number of parts 50,000 50,000 40,000 Assembling parts Direct labor hours 16,000 16,000 9,000 Purchasing parts Number of orders 15,000 10,000 5,500 The following additional cost data are also provided: Material usage $50 per part used Assembling parts $15 per direct labor hour Purchasing parts There are four salaried clerks capable of processing 3,000 purchase orders each. Each earns a salary of $30,000 annually. Variable activity costs are $1.25 per purchase order processed. Based on the new demand, the number of clerks can be reduced by one. Calculate the cost reduction produced by the new design