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Using the Lambert's strategic profit model focms below, calculate the ROA, and the change in ROA from . the Base Case for each of the

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Using the Lambert's strategic profit model focms below, calculate the ROA, and the change in ROA from . the Base Case for each of the five cases. Refer to the strategic profit model from your notes to figure out how to make the caloulations regaired. Place your answers in the foms below, and upload this document through Canvas before the sabmission date. Late subomissions for this assignment will not be accepted. The Scenario: You work in the SC departmeat of a firm that makes microchips. You are trying to convince your manager that small changes in the way your company handles its logistic and supply chan practices and improve the fitm s fimancial performance. You ve decided to postuiste five different cases of changes and need to calctate their expected effect on 120A for the firm. The way your firm currently does business is identified in the Base Case below. Each case describes bow the lirm minht change tis practices. The Base Case: - Price of microchips: $9.50 - Quantity of Microchips the firm sells at 510 under current logistics practices: 1,200 - Cost of Goods (to produce a microchip) $7.50 - Variable Costs 0 Transportation: 5% of sales revenue o Handling: 2% of sales revenue - Promotions; 3% of sales revenue - Fixed Expenses, $840.00 - Inventory Costs: 25% of Sales revenue - Accounts Receivable: 20% of Sales revenue - Other Current Assets: S1,000 - Fixed Assets: 56,500 Case I: 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 mosecy, reducing the cost of transportation from 5% to 4%. Case 2: Starting from the Base Case, you recommend the firm segment its customers and set different payment expectations with Class II-Class V customers, allowing the fim to reduce accounts receivable from 20% of sales to 15% of sales. Case3: Starting from the Base Case, you recommend better logistics operations practices, allowing you to keep less work-in-progress and raw material inventory, reducing Cost of Goods from $7.50 to $7.25 per unit with no change in service to your customers. Case 4: Starting from the Base Case, you recommend closer relstionships with your Class I and Class II customers so you have a better sense of customer demand, allowing you to set higher fill rases for them. increasing quantiry sold from 1,200 to 1,400. Case 5: Starting from the Base Case, you recommend making changes to all of the areas lissed in Cases 1-4, but suggest putting less effort into each, resulting in smaller outcome changes, plus closer relationships with your customers allowing you to keep lower amounts of inventory. Those expected changes are: - Qaantify Sold increase from 1,200 to 1,300 - Cost of Goods decrease from 57.50 to 57.40 - Transportationz decrease from 5% to 4.75% - Itiventory: decrease from 25 to 22% of ales reveate - Accounts Receivable decrease from 20 sto 18% of sales. Case 4: Increase Quantity Sold | Change in ROA Gase 5: Improve Mulliple Areas of the Firm/Change in ROA

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