Universal Company has made changes in its inventory handling policies that are expected to increase turnover from 7 to 8 times per year.

Universal Company has made changes in its inventory handling policies that are expected to increase turnover from 7 to 8 times per year. Unity’s budgeted sales and costs of sales for the next year are $42 million and $28 million, respectively. At a 6% interest rate, what are Unity’s expected savings from the lower inventory level?