In an effort to improve its competitive position, Dallas Co. recently introduced a new inventory control system. Its management accountant assembled the following data regarding the recent change:

Item	Before new system	After new system
Production cycle time	50 days	40 days
Inventory level	$200,000	$120,000
Total sales	$1,800,000	$2,000,000
Estimated cost data, % of sales
Direct materials	35%	30%
Direct labor	20%	15%
Variable overhead	15%	10%
Fixed overhead	10%	5%

The company's inventory financing cost is estimated as 10% per year.

Required:

1. Estimate the net financial benefit (expressed in terms of operating income) that the company realized from the switch to a new inventory control system. 2. List four (4) non-financial benefits the company might expect as a result to its move to new inventory control system. 3. What are the primary expected costs of implementing a new inventory control system?