1. Below is a "Return on Assets Model which shows the effect of cost reduction in purchases on other aspects of the organization. Determine the blank figures in the diagram below based on the data and information provided and the asterisk footnotes. For Total Costs, indicate what portion corresponds to Purchase Costs and Other Costs before and after the implementation of the purchase cost reduction strategy. ** The inventory (Inventory) represents approximately 15% of the total assets (Total Assets) of the company ** The cost of purchases (Purchases) amounts to 40% of total sales. ** Figures in parentheses () assume a 10% purchase cost reduction strategy. ** Assume that the inventory (Inventory) of the organization is reduced in the same proportion in which the cost of purchases (Purchases) has been reduced. ** Indicate the components of Total Costs, that is, Purchase Costs and Other Costs, before and after the implementation of the purchasing cost reduction strategy. Before: Purchase Costs: ? After: Purchase Costs: ? Other Costs: ? Other Costs: ? (Ctrl) 1. Below is a "Return on Assets Model which shows the effect of cost reduction in purchases on other aspects of the organization. Determine the blank figures in the diagram below based on the data and information provided and the asterisk footnotes. For Total Costs, indicate what portion corresponds to Purchase Costs and Other Costs before and after the implementation of the purchase cost reduction strategy. ** The inventory (Inventory) represents approximately 15% of the total assets (Total Assets) of the company ** The cost of purchases (Purchases) amounts to 40% of total sales. ** Figures in parentheses () assume a 10% purchase cost reduction strategy. ** Assume that the inventory (Inventory) of the organization is reduced in the same proportion in which the cost of purchases (Purchases) has been reduced. ** Indicate the components of Total Costs, that is, Purchase Costs and Other Costs, before and after the implementation of the purchasing cost reduction strategy. Before: Purchase Costs: ? After: Purchase Costs: ? Other Costs: ? Other Costs: ? (Ctrl)