You work for an insurance company that processes claims through both a newer, larger high-tech facility and an older, smaller low-tech facility. Each month, the high-tech facility is working at capacity handling 10,000 claims. It incurs $110,000 in fixed costs and $110,000 in variable costs (which is almost entirely labor costs). Each month, the low-tech facility handles 2,200 claims, incurs $16,900 in fixed costs and $24,000 in variable costs (which is almost entirely labor costs). If you anticipate that in the short-run the number of claims will decrease by 1,000 per month, where does it most make sense (from a cost point of view) to reduce claims processing and lay-off workers first?