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BuffaloCompany's budgeted sales and budgeted cost of goods sold for the coming year are $129,870,000and $89,640,000, respectively. Short-term interest rates are expected to average 10%.

BuffaloCompany's budgeted sales and budgeted cost of goods sold for the coming year are $129,870,000and $89,640,000, respectively. Short-term interest rates are expected to average 10%. IfBuffalocan increase inventory turnover from its present level of9times a year to a level of10times per year.

Compute its expected cost savings for the coming year.

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