Coronado Companys budgeted sales and budgeted cost of goods sold for the coming year are $140,710,000 and $99,630,000, respectively. Short-term interest rates are expected to average 10%. If Coronado can increase inventory turnover from its present level of 9 times a year to a level of 10 times per year. Compute its expected cost savings for the coming year.

Expected Cost Savings