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ABCs budgeted sales and gross profit rate for the coming month are $288,000 and 37.5%, respectively. Short-term interest rates are expected to average 6%. If

ABCs budgeted sales and gross profit rate for the coming month are $288,000 and 37.5%, respectively. Short-term interest rates are expected to average 6%. If ABC could increase inventory turnover from its current 8.0 times per year to 10,000 times per year, what would be its expected cost savings in the current year?

$1,080,000

$810,000

$270,000

$162,000

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