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ABC's required rate of return on investment is 15% per year. ABC's budgeted income statement for the year ending December 31, 2017, (in thousands) is: Revenues (1,000,000 units) $15,000 Cost of goods sold Variable costs $6,380 Fixed costs $2,820 Total cost of goods sold 9,200 Gross margin 5,800 Marketing and distribution costs Variable costs $2,010 Fixed costs 750 Total marketing and distribution costs 2,760 Operating income 3,040 Required: 1. Calculate the estimated dollar savings (loss) for the ABC Corporation that would result in 2017 from the adoption of JIT purchasing. 2. Identify and explain other factors that ABC should consider before deciding whether to adopt JIT purchasing.