The Lantern $($a news clipping service$)$ is considering an artificial intelligence $($Al$)$ product. Rather than manually clipping and photocopying articles of interest and mailing them to its clients, employees electronically input stories from most widely circulated publications into a database. Each new issue is searched for key words, such as a client's company name, competitors' names, type of business, and the company's products, services, and officers. When matches occur, affected clients are instantly notified via an online network. If the story is of interest, it is electronically transmitted, so the client often has the story and can prepare comments for follow$-$up interviews before the publication hits the street. The manual process has fixed costs of $$380,000$ per year and variable costs of $$6\mathrm{.}10$ per clipping mailed. The price charged to the client is $$9\mathrm{.}00$ per clipping. An Al process can improve client targeting. The new service has fixed costs of $$1,100,000$ per year and variable costs of $$2\mathrm{.}15$ per story electronically transmitted to the client.