[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 79% on-time delivery rate. Twenty-nine percent of the items are misplaced and the remaining 1% are lost in shipping. On average, the firm incurs an additional $59 per item to track down and deliver misplaced items. Lost items cost the firm about $240 per item. Last year, the firm shipped 5,940 items with an average freight bill of $140 per item shipped. The firm'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 firm 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 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.) 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 items-existing sales Change in pre-tax cash flow per year under the new system