RCL Pvt. is considering whether it should use JIT or not? Following are the cost applicable to RCL Pvt.:

Material inspection cost 75,000

Material Storage costs 30,000

Material movement costs 25,000

Process 1 cost 45,000

Process 2 cost 35,000

Factory overhead apportion costs 50,000

If RCL Pvt. applies JIT, it can save up to 40% of material movement cost. Additional cost for JIT could be 25,000