Case 3 Waterworld Inc. manufactures plastic slides for residential pools. The company is considering implementing a JIT productions system. The following are estimated costs and benefits of JIT production: Annual additional tooling costs would be $200,000. Insurance, space, materials-handling, and setup costs, which currently total $600,000 annually, would decline by 25%. The emphasis on quality inherent in JIT production would reduce rework costs by 30%. Waterworld Inc. currently incurs $400,000 in annual rework costs. Improved product quality under JIT production would enable Waterworld Inc. to raise the price of its product by $8 per unit. Currently, the company sells 40,000 slides per year. Required: (A) If Waterworld Inc. adopts JIT production, what is the net financial benefit? (B) What non-financial factors should management at Waterworld Inc. consider when making the decision of whether to adopt JIT production