Sheridan Companys budgeted sales and budgeted cost of goods sold for the coming year are $143,900,000 and $88,290,000, respectively. Short-term interest rates are expected to average 10%. If Sheridan can increase inventory turnover from its present level of 8 times a year to a level of 12 times per year. Compute its expected cost savings for the coming year.

Expected Cost Savings

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