. . The Base Case: Price of microchips: $9.50 Quantity of Microchips the firm sells at $10 under current logistics practices: 1,200 Cost of Goods (to produce a microchip): S7.50 Variable Costs o Transportation: 5% of sales revenue o Handling: 2% of sales revenue o Storage: 2% of sales revenue o Promotions: 3% of sales revenue Fixed Expenses: $840.00 Inventory Costs: 25% of Sales revenue Accounts Receivable: 20% of Sales revenue Other Current Assets: $1,000 Fixed Assets: $6,500 . Case 1: Starting from the Base Case, you recommend the firm partner with a smaller number of transportation providers who will provide the same level of service for less money, reducing the cost of transportation from 5% to 4% Casc 1: Increase Transportation Efficiency Change in ROA % $9.50 Price Sales 1,200 Quantity $ Gross Margin $ Net Profit % Net Margin $ $7.50 Cost of Goods Cost of Goods Sold 1,200 Quantity Sales $ % Return on Assets $ _Total Expenses Variable Expenses 4.00% Transportation 2.00% Handling 2.00% Storage 3.00% Promotions $840 Fixed Expenses Sales Asset Turnover Inventory $ Total Assets $ Current Assets $ Fixed Assets $ Accounts Receivable $1,000 Other Current Assets . . The Base Case: Price of microchips: $9.50 Quantity of Microchips the firm sells at $10 under current logistics practices: 1,200 Cost of Goods (to produce a microchip): S7.50 Variable Costs o Transportation: 5% of sales revenue o Handling: 2% of sales revenue o Storage: 2% of sales revenue o Promotions: 3% of sales revenue Fixed Expenses: $840.00 Inventory Costs: 25% of Sales revenue Accounts Receivable: 20% of Sales revenue Other Current Assets: $1,000 Fixed Assets: $6,500 . Case 1: Starting from the Base Case, you recommend the firm partner with a smaller number of transportation providers who will provide the same level of service for less money, reducing the cost of transportation from 5% to 4% Casc 1: Increase Transportation Efficiency Change in ROA % $9.50 Price Sales 1,200 Quantity $ Gross Margin $ Net Profit % Net Margin $ $7.50 Cost of Goods Cost of Goods Sold 1,200 Quantity Sales $ % Return on Assets $ _Total Expenses Variable Expenses 4.00% Transportation 2.00% Handling 2.00% Storage 3.00% Promotions $840 Fixed Expenses Sales Asset Turnover Inventory $ Total Assets $ Current Assets $ Fixed Assets $ Accounts Receivable $1,000 Other Current Assets