Required information {The following infomafion applies to the questions displayed below} Lightening Bulk Company is a moving company specializing in transporting large items worldwide. The rm has an 79% on-time delivery rate. Twenty-nine percent of the items are misplaced and the remaining 1% are lost in shipping. On average. the rm incurs an additional $59 per item to track down and deliver misplaced items. Lost items cost the rm about $240 per item. Last year, the rm shipped 5,940 items with an average freight bill of $140 per item shipped. The rrn's manager is considering investing in a new scheduling and tracking system costing $130,000 per year. The new system is expected to reduce misplaced items to 17% and lost items to 0.25%. Furthermore, the rm expects total sales to increase by 26% with the improved service. The average contribution margin ratio on any increased sales volume, after cost savings associated with a reduction in misplaced and lost items. is expected to be 31.5%. Required: 1a. Based on a relevant cost analysis, should the rm install the new tracking system? OYes No 1b. What is the estimated change in pretax cash flow under the proposed system? [Negative amounts should be indicated by a minus sign. Round your answers to the nearest whole dollar amount.) Costofthe new system {per year) Expected benets each year from the new system: Contribution margin from sales increase Cost savings from decrease in misplaced itemsexisting sales Savings from decrease in lost itemsexisting sales Change in protax cash ow per year under the new system