1 of 17 (1 complete) HW Score: 0%, 0 of 50 pts Score: 0 of 5 pts X P7-33 (similar to) Question Help To facilitate a move toward JIT production, ABC Company is considering a change in its plant layout. The plant controller, Anna Bliss, has been asked to evaluate the costs and benefits of the change in plant layout. After meeting with production and marketing managers, Anna has compiled the following estimates: (Click the icon to view the estimates.) Requirement Should ABC implement the proposed change in plant layout? Support your answer. Complete the following analysis of the cost and benefits of the proposed change in plant layout. (Consider only one year's costs and benefits. Use a parentheses or minus sign to show a net cost. Leave unused cells blank.) Item Relevant amount A More Info Benefits: Increase in contribution margin Decrease in inventory costs 12,000 Costs: Machine moving and reinstallation costs Machine moving and reinstallation will cost $90,000. Total sales will increase by 15% to $805,000 because of a decrease in production cycle time required under the new plant layout. Average contribution margin is 45% of sales. Inventory-related costs will decrease by 30%. Currently, the annual average carrying value of inventory is $200,000. The annual inventory financing cost is 20%. Print Done Net benefits/(costs) Choose from any list or enter any number in the input fields and then click Check