ABC Manufacturing is considering the implementation of a Just In Time (JT) inventory system. The annualized impacts of implementing a JIT system are estimated as follows: - Lost sales due to stock out is estimated to be 8,000 units - Annual revenues were $5,000,000 for 200,000 units. - Variable manufacturing costs are $15 per unit and Variable marketing costs were $6 per unit. - Overtime premiums are currently $30,000 and would increase by 20%. - Return on investment is 10%. Average inventory of $1,000,000 would decline by 70%. - Additional tooling costs would be $55,000 and have to be done every 6 months. - Plant insurance and maintenance costs would decrease by $18,000. - Plant storage of 12,000 square feet is no longer required and could be rented for $5.00 per square foot. Required Calculate the net benefit or cost of implementing a JIT system. Should the company implement a JIT system