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Bratmore Company introduced JIT manufacturing last year and has prepared the following data to assess the benefits from the change: (Click the icon to
Bratmore 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.) 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. Data table - X 5 of 5 questions 5 of 9 questions CATEGORY BEFORE THE CHANGE AFTER THE CHANGE Production cycle time. 50 days 25 days of 5 questions Inventories $ 240,000 70,000 Total sales $ 800,000 $ 1,600,000 switch to JIT manufacturing operations. (Leave Costs as percent of sales: Direct materials 35% Direct labor Support 30% 25% 30% 32% 37% Print Done
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