Heartland Companys budgeted sales and budgeted cost of goods sold for the coming year are $142,700,000 and $94,770,000, respectively. Short-term interest rates are expected to average 10%. If Heartland can increase inventory turnover from its present level of 8 times a year to a level of 10 times per year.

Compute its expected cost savings for the coming year.

Expected Cost Savings $