Ellen's staff proposed two alternative distribution strategies for the stores in Illinois: The company began in Illinois

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Ellen's staff proposed two alternative distribution strategies
for the stores in Illinois:
The company began in Illinois and its stores in the state
enjoyed strong sales. Each Illinois store sold, on average, 50,000
units a year of product from each supplier (for annual sales of
400,000 units per store). Holding costs for Michael’s were $1 per
unit per year. Ellen asked her staff to propose different
distribution alternatives for both Illinois and Arizona.
Distribution Alternatives for Illinois Ellen’s staff proposed two
alternative distribution strategies for the stores in Illinois: Use
direct shipping with even larger trucks that had a capacity of
40,000 units. These trucks charged only $1,150 per delivery to an
Illinois store. Using larger trucks would lower transportation
costs but increase inventories because of the larger batch
sizes.
What is the Total savings and total cost
for using larger trucks?