Check my work 5 As part of its commitment to quality, the J. J. Borden manufacturing company is proposing 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: 0.41 Existing After points Situation Adopting JIT Item Manufacturing costs as percentage of sales: Product-level support Variable manufacturing overhead 138 60 ook 28 13 Direct materials 30 20 References Direct manufacturing labor 21 14 Other financial data: $1,740,000 39,000 Sales revenue $1,395,000 225,000 Inventory of WIP Other data: 60 days 30 days Manufacturing cycle time Inventory financing costs (per annum) 10% 10% Required: As the management accountant for the company, prepare an estimate the financial benefits associated with the adoption of JIT Specifically, what is the estimated change in annual operating income attributable to the JIT implementation? LO Current After JIT Items Change Situation Less: Costs Operating profit