The Gerber Hardware Company manufactures specialty brass door handles at its Ottawa plant. Gerber is considering implementing a JIT production system. The following are the estimated costs and benefits of JIT production: i (Click the icon to view the estimated costs and benefits.) Gerber's required rate of return on inventory investment is 20% per year. Required - Estimated costs and benefits Requirement 1. Calculate the net benefit or cost to Gerber if it adopts JIT production at the Ottawa plant. Fill in the table below showing the relevant costs under current production system and under the JIT system. (Use parentheses or a minus sign whole dollar) Annual Relevant Costs of Current Production System and JIT Production System for Gerber Hardware Company Relevant Costs under Current Production Relevant Costs under JIT Relevant Items System Production System Annual tooling costs Required return on investment: Average inventory per year Insurance, space, materials handling, and setup costs Rework costs a. Annual additional tooling costs would be $235,000. b. Average inventory would decline by 80% from the current level of $2,005,000. C. Insurance, space, materials-handling, and setup costs, which currently total $610,000 annually, would decline by 25%. d. The emphasis on quality inherent in JIT production would reduce rework costs by 30%. Gerber currently incurs $440,000 in annual rework costs. e. Improved product quality under JIT production would enable Gerber to raise the price of its product by $6 per unit. Gerber sells 43,000 units each year. Print Done Incremental revenues from higher selling prices Total net incremental costs The annual net benefit to Gerber Hardware Company is (Round your final answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net benefit.)