Question: 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

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 $150,000 in labor and processing. Adding an improved cost center system for an amount of $35,000, would reduce the likelihood down by 75% from the current likelihood of 20%. Answer following results of cost/benefit analysis.

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