To reduce production start-up cost, Marlen corp. may manufacture longer runs of the same track. Estimated savings from this change are P260,000 per year. However, inventory turnover will decrease from eight times a year to six times a year. Cost of goods sold are P48,000,000 on an annual basis. If the required rate of return on investment in inventory is 15%, should the company implement the new production plan? DECIDE AND EXPLAIN.