Provide recommendations to top management for both proposals, A and B, stating the logic/rationale for implementing the proposal. Your recommendation needs to discuss the impact on ROA using the Strategic Profit Model.

Valley Kayaks Problem.(Ch2 - 2018) - Word Picture Tools Brad Sheaffer-O File Home Insert Design Layout References Mailings Review View Help FormatTell me what you want to do Share Cut Copy Find Replace Paste Blu, abEX, X, A-2-a- ,3.0, TAlommallTNoSpac Heading 1 Heading 2 Title Subtitle Subtle Erm Emphasis Clipboard Font Paragraph Styles Editing Week 1- Problem from Chapter 9 A. You are the operations manager for a small kayak and canoc manufacturer (Valley Kayaks) locate on the Pacific Northwest (Oregon) Lately your company has experience product quality problems. Simply put, the kayaks that you produce occasionally have defects and require rework. Consequently, you have decided to assess the impact of introducing a quality management (TQM) program. After discussing the potential effects with representatives from marketing, finance, accounting, and quality, you arrive at a set of estimates (contained in the following table). Top management has told you that it will accept any proposal that you come up with, provided that it improves the return on assets measure by at least 30%. Show your calculations and then determine if you would go forward with this proposal? Category Sales Cost of goods sold Variable expenses Fixed expenses Inventory Accounts receivable Other current assets Fixed assets Current Values $2,000,000 $1,500,000 $ 300,000 $100,000 $ 30,000 $ 100,000 $500,000 $400,000 Estimated Impact of TOM | 5% + (improvement) 0% 8.25%-(reduction) 0% 25% 10% 0% 0% Page 1 of 2 261 words 100%