E19-10 Cool Cuts manufactures casual menswear. Eric Haynes, the CEO, is trying to decide whether to adopt just-in-time (JIT). He expects that in present-value terms, adopting JIT would save $113,000 in warehousing expenses and $67,800 in spoilage costs. Adopting JIT will require several one-time up-front expenditures: (1) $27,000 for an employee training program, (2) $49,500 to streamline the plant's production process, and (3) $8,000 to identify suppliers that will guarantee zero defects and on-time delivery. Required 1. What are the total costs of adopting JIT? 2. What are the total benefits of adopting JIT? 3. Should Cool Cuts adopt JIT? Why or why not?