To facilitate a move toward JIT production, Alpha Company is considering a change in its plant layout. The plant controller, Ann Brown, has been asked to evaluate the costs and benefits of the change in plant layout. After meeting with production and marketing managers, Ann has compiled the following estimates (Click the icon to view the estimates.) Requirement Should Alpha implement the proposed change in plant layout? Support your answer Complete the following analysis of the cost and benefits of the proposed change in plant layout. (Consider only one year's costs and benefits. Use a parentheses or minus sign to show a net cost. Leave unused cells blank.) item Relevant amount More Info Benefits e Machine moving and reinstallation will cost $150,000 Total sales will increase by 25% to $1,250,000 because of a decrease in production cycle time required under the new plant layout. Average contribution margin is 20% of sales inventory-related costs will decrease by 30%. Currently, the annual average carrying value of inventory is $250,000. The annual inventory financing cost is 10% Costs Print Done Choose from any list or enter any number in the input fields and then click Check Answer part remaining Clear All Check Answer To facilitate a move toward JIT production, Alpha Company is considering a change in its plant layout. The plant controller, Ann Brown, has been asked to evaluate the costs and benefits of the change in plant layout. After meeting with production and marketing managers, Ann has compiled the following estimates (Click the icon to view the estimates.) Requirement Should Alpha implement the proposed change in plant layout? Support your answer Complete the following analysis of the cost and benefits of the proposed change in plant layout. (Consider only one year's costs and benefits. Use a parentheses or minus sign to show a net cost. Leave unused cells blank.) item Relevant amount More Info Benefits e Machine moving and reinstallation will cost $150,000 Total sales will increase by 25% to $1,250,000 because of a decrease in production cycle time required under the new plant layout. Average contribution margin is 20% of sales inventory-related costs will decrease by 30%. Currently, the annual average carrying value of inventory is $250,000. The annual inventory financing cost is 10% Costs Print Done Choose from any list or enter any number in the input fields and then click Check Answer part remaining Clear All Check