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Given the following data: Sales 25,200,000 Cost of sales 14,400,000 Inventory turnover 9x For next year, budgeted sales and cost of sales are the same

Given the following data:

Sales 25,200,000

Cost of sales 14,400,000

Inventory turnover 9x

For next year, budgeted sales and cost of sales are the same last year, although the company will try to increase its inventory turnover to 12 times per year. If short term interest rates are expected to average at 8%, what is the company's expected savings due to the increase in inventory turnover?

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