As part of its commitment to quality, the J.J. Borden manufacturing company is porposing to introduce just-in-time (JIT) production methods. Managers of the company have an intuitive feel regarding the financial benefits associated with a change to JIT, but they would like to have some data to inform their decision making in this regard. You are provided with the following data:

Questions 1. Which cost as a percentage of sales has the greatest decrease from the prior system to the new JIT system? 2. Do any costs as a percentage of sales increase from the current system to the JIT system? 3. What is the Direct materials as a percentage of sales under the JIT system? 4. What is the amount of sales revenue under the current system? 5. What is the difference between the current system and the JIT system for Inventory of WIP? 6. What fraction of the current cycle time does the JIT system take? 7. Given this data, does the JIT system look like a good improvement to make