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Item Description Amount 1 Sales $300,000,000 2 Transportation costs $18,000,000 3 Warehousing costs $4,500,000 4 Inventory Carrying costs 30% 5 Cost of goods sold $135,000,000

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Item Description Amount 1 Sales $300,000,000 2 Transportation costs $18,000,000 3 Warehousing costs $4,500,000 4 Inventory Carrying costs 30% 5 Cost of goods sold $135,000,000 6 Other operating costs $75,000,000 7 Average inventory $15,000,000 8 Accounts receivable $45,000,000 9 Cash $22,500,000 lol 10 Net fixed assets $135,000,000 11 Interest $15,000,000 12 Taxes 40% of (EBIT-Interest) 13 Current liabilities $97,500,000 14 Long-term liabilities $52,500,000 15 Stockholders equity $67,500,000 1. Using the above table calculate the following: a. Gross Profit Margin b. Net Profit Margin c. Retum on Assets (ROA) d. Transportation Costs as a % of Revenue e. Warehousing costs as a % of Revenue Pad Calculate the Impacton Gross Profit Margin and Net Profit Margin ROA, Transportation, Warehousing and Inventory costs as a percentage ofrevenue for the below scenario: a. Scenario A i. Transportation costs increase = 10% . Warehousing costs decrease=2.5% iii. Average inventory decrease=5% b. Scenario B-Warehousing is outsourced with the following i. Net fixed assets reduced=10% ii. Inventory reduced=7.5% m. Warehousing costs=$0 iv. Transportation costs reduced=2.5 V. Outsourcing provider costs = $3,750,000

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