. Using the supply chain finance model developed for Study Question 5, calculate the impact on profit margin; ROA; inventory turns; and transportation, warehousing, and inventory costs as a percentage of revenue for the following scenarios: Scenario A Transportation costs increase 20% Warehousing costs decrease 5% Average inventory decrease-1096 Scenario B Warehousing is outsourced with the following: Net fixed assets reduced 20% Inventory reduced 15% Warehousing costs 0 Transportation costs reduced 5% Outsourcing provider costs $2,500,000 Sales $200,000,000 Transportation cost $12,000,000 Warehousing cost $3,000,000 Inventory carrying cost : 30% Cost of goods sold $90,000,000 Other operating costs $50,000,000 Average inventory $10,000,000 Accounts receivable $30,000,000 Cash $15,000,000 Net fixed assets = $90,000,000 Interest $10,000,000 Taxes = 40% of (EBIT-Interest) Current liabilities = $65,000,000 Long-term liabilities-$35,000,000 Stockholders' equity $45,000,000 INCOME STATEMENT Sales Cost of Goods Sold Gross Margin Transporatation Cost$12,000,000 Ware Housing Cost $200,000,000 $90,000,000 $110,000,000 C-A-B $3,000,000 $3,000,000 F-0.3*Avg Inventorylnventory Carrying cost 0%*10,000,00 Other Operating Cost$50,000,000 Total Operating Cost EBIT Interest EBT Tax Net Income H-DtE+F+G I=CH $68,000,000 $42,000,000 $10,000,000 $32,000,000 $12,800,000 $19,200,000 K-J L=0.4*K M-K-L 40% of EBT Average Invento Account Recievable Cash Net Fixed Assets $10,000,000 $30,000,000 $15,000,000 $90,000,000 $145,000,000 S-O+P+Q+R Total Assets T=M/ A U-S/A V-B/O W-D/A X-E/A Y-F/A Ratios Profit Margin ROA Inventory turn over Transportation as % of Revenue warehousing as % of Revenue Inventory cost as % of Revenue 9.60% Net income/ Sales-19,200,000/200,000,000 13.24% Net income/ Total Assets-19,200,000/145,000,000 9COGS/Avg Inv-90,000,000/10,000,000 6.00%Transportation cost/sales-12,000,000*100/200,000,000 1.50% Warehousing cost/sales-3,000,000*100/200,000,000 1.50% Inventory cost/sales-3,000,000*100/200,000,000