What is the estimated change in annual operating income attriutable to the JIT implementation?

As part of its commitment to quality, the J. J. Borden manufacturing company is proposing to introduce just-in-time (JIT) production methods. Managers of the company have an intuitive feel regarding the financial benefits associated with a change to JIT, but they would like to have some data to inform their decision making in this regard. You are provided with the following data: Existing After Item Adopting JIT Situation Manufacturing costs as percentage of sales: Product-level support Variable manufacturing overhead Direct materials Direct manufacturing labor 14 5% 28 11 30 20 13 Other financial data: $1,450,000 280,000 $1,850,000 50,000 Sales revenue Inventory of WIP Other data: Manufacturing cycle time Inventory financing costs (per annum) 30 days 60 days 104 10% Required: As the management accountant for the company, prepare an estimate the financial benefits associated with the adoption of JIT. Specifically, what is the estimated change in annual operating income attributable to the JIT implementation? Current After JIT Change Items Situation Required: As the management accountant for the company, prepare an estimate the financial benefits associated with the adoption of JIT. Specifically, what is the estimated change in annual operating income attributable to the JIT implementation? Current Items After JIT Change Situation Less: Costs Operating profit