Corral Corporation is experiencing errors with inventory tracking. Incorrect tracking causes errors in inventory balances and the financial statements. To make corrections cost the company $75,000 in labor and processing. Adding an improved cost center system for an amount of $6,000, would reduce the likelihood down by 25% from the current likelihood of 24%. Answer following results of cost/benefit analysis.

1. What is difference in expected loss without procedure and with procedure?

2. What is net expected benefit for cost/benefit analysis?

3. Should you reduce the likelihood by implementing procedure, or accept likelihood of loss? Enter one word, reduce or accept.