You are the operations manager for a small kayak and canoe manufacturer (Valley Kayaks) located on the Pacific Northwest (Oregon). Lately your company has experienced 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 total quality management (TOM) 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 they will accept any proposal that you come up with PROVIDED that it improves the return on assets measure by at least 20 percent. Use Figure 2.3. Category Current Values Estimated Impact of TOM Sales $ 2,964,000 89 (improvement) Cost of goods sold $ 2,200,000 Os Variable expenses 380,000 8.25 (reduction) Fixed expenses 148,200 Os Inventory 309,000 20 Accounts receivable 130,000 OS Other current assets 771,000 Fixed assets 552,000 ON $ $ $ $ $ $ a a.Calculate ROA with changes and without changes? (Round your answers to 2 decimal places.) ROA With changes Without changes b. Would you go forward with this proposal to improve quality? Yes No