Just-in-time manufacturing and cost savings Bogden Company introduced just-

in-time manufacturing last year and has prepared the following data to assess the

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benefits from the change: CATEGORY Production cycle time Work-in-process inventory Total sales Costs as percent of sales: Direct materials Direct labor Variable support Fixed support BEFORE THE CHANGE 68 days $ 160,000 $1,260,000 30% 22% 28% 12% AFTER THE CHANGE $ 30 days 40,000 $1,700,000 25% 15% 10% 5% Inventory financing costs are 15% per year. Estimate the total financial bene- fits that resulted from the switch to just-in-time manufacturing operations.