Question 1 You are the logistics manager for an international company that builds solar panels, Sola-R-Us. You have just concluded a successful negotiation to lower your company's global transportation costs by 12%. Using the information below, answer the following questions: 1. What is the impact of this 12% reduction on the profit of your company? 2. What is the amount of sales that your company's sales team must generate in order to match the 12% reduction you just negotiated? Sales COGS Transportation Costs $25,000,000 $18,100,000 $ 4,000,000 Net Profit $ 2,900,000 Question 2 Your negotiation skills at Sola-R-Us company have earned you quite a reputation, one that has attracted attention from top management. As a result, the CEO of the company wants you to negotiate another 3% reduction in transportation costs-and- an 8% reduction in COGS, which you easily accomplish. Using the information above and your answers to the problems in Question 1, answer the following questions: 1. What is the impact of the additional 3% reduction in transportation costs and the impact of the 8% reduction in COGS on the profit of your company 2. What is the amount of sales that your company's sales team must generate in order to match the 3% and 8% reductions that you just negotiated? Question 3 uses the Strategic Profit Model (SPM) to calculate the ROA of Sola-R-Us and how the negotiated reductions in COGS and Transportation in Questions 1 and 2 can improve ROA. HINT: You can create your own version of the SPM in excel -or-copy the SPM spreadsheet from the PowerPoint slides, to make the calculations below easier. Part A. Using the Strategic Profit Model (SPM) with the following base numbers, calculate the ROA for Sola-R-Us for the base case found above and repeated here: Sales COGS Transportation Costs $25,000,000 $18,100,000 $ 4,000,000 Net Profit $ 2,900,000 NOTE: Assume transportation costs cover all Variable Expenses in your SPM. Fixed Expenses: $0 Inventory: $3,200,000 Accounts Receivable: $2,450,000 Other Current Assets: $900,000 Fix Assets: $850,000 Part B. Using your final numbers from Question 2 above, calculate the new ROA for Sola-R-Us. Part C. What is the percentage improvement in ROA after all of the reductions in COGS and Transportation