! Required information (The following information applies to the questions displayed below.] Lightening Bulk Company is a moving company specializing in transporting large items worldwide. The firm has an 80% on-time delivery rate. Twenty-eight percent of the items are misplaced and the remaining 2% are lost in shipping. On average, the firm incurs an additional $60 per item to track down and deliver misplaced items. Lost items cost the firm about $250 per item. Last year, the firm shipped 5,950 items with an average freight bill of $150 per item shipped. The firm's manager is considering investing in a new scheduling and tracking system costing $145,000 per year. The new system is expected to reduce misplaced items to 16% and lost items to 0.50%. Furthermore, the firm expects total sales to increase by 25% 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 32.5%. Required: 1a. Based on a relevant cost analysis, should the firm install the new tracking system? O Yes O 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.) $ 72,516 Cost of the new system (per year) Expected benefits each year from the new system: Contribution margin from sales increase Cost savings from decrease in misplaced items-existing sales Savings from decrease in lost itemsexisting sales Change in pre-tax cash flow per year under the new system $ 72,516