QUESTION 4 (25 Marks) In an effort to improve its competitive position, Kok Meng Bhd recently introduced Just-in- Time (JIT) production techniques. Its management accountant assembled the following data regarding the recent change: Prior to JIT 68 days RM 160,000 RM 1,260,000 After JIT implementation 30 days RM 40,000 RM 1,700,000 Items Production cycle time Inventory level Total Sales Estimated cost data, % of sales: Direct Materials Direct Labor Variable Overhead Fixed Overhead 30% 22% 28% 12% 20% 15% 10% 5% Inventory financing cost is estimated as 15% per year. Required: a) Compute the net financial benefits (in terms of operating income) that the company realized before and after switching to JIT manufacturing. (15 marks) b) List FOUR (4) non-financial benefits the company might expect as a result to its move to JIT. (4 marks) c) Discuss THREE (3) primary costs of implementing a JIT system. (6 marks)