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Boris Company introduced JIT manufacturing last year and has prepared the following data to assess the benefits from the change: (Click the icon to view
Boris Company introduced JIT manufacturing last year and has prepared the following data to assess the benefits from the change: (Click the icon to view the data.) s Inventory financing costs are 12% per year. Support costs are based on a time-driven activity-based costing analysis. Requirement Estimate the total financial benefits that resulted from the switch to JIT manufacturing operations. Complete the following analysis of the sales and costs to estimate the total financial benefits that resulted from the switch to JIT manufacturing operations. (Leave unused cells blank.) Sales Costs: Direct materials Direct labor Support Inventory carrying costs Profit Before the Change After the Change Difference mancia CATEGORY Production cycle time Inventories ng an Total sales Costs as percent of sales: Direct materials Direct labor Support I BEFORE THE CHANGE 50 days AFTER THE CHANGE 25 days 250,000 $ 80,000 operations. $ 1,500,000 $ 2,000,000 35% 25% 15% 10% 18% 8% Print Done
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