Can someone please help me solve this problem, I am getting stuck.

Problem 2. Strategic Profit Model (14 points) In the Topic 4 End of Topic Case, Katie Lee, a consultant hired by RR on-line, is considering 3 options to improve RR on-line's supply chain efficiency and customer service levels. During the class on Feb 21, we (will) conduct the analysis for the first 2 options. Here you are asked to conduct the analysis for the third one. Base Case Balance Sheet (in millions) Base Case Income Statement (in millions) Sales 74,452 Asset Cost of Goods Sold 47,546 Cash 8,658 Gross Margin 26,906 Accounts Receivable 4,767 Transportation 6,635 Inventory 7,411 Warehousing 8,585 Total Current Assets 20,836 Inventory Carrying 4,733 Fixed Assets 10,949 Other Operating Cost 6,208 Total Assets 31,785 Total Operating Cost 26,161 Liabilities Interest 239 Current Liabilities 18,848 Taxes 161 Long Term Debt 3,191 Net Income 345 Total Liabilities 22,039 Stockholder's Equity 9,746 Total Liabilities & Tant 31,785 Base Case Strategic Profit Model: Sales $74,452 Gross Profit $26,906 COGS $47,546 Net Income $345 Logistics Costs $19,953 Total Op. Costs $26,161 Profit Margin 0.46% + + Other Op. Costs $6,208 Sales $74,452 Taxes & Interest $400 Return on Assets 1.09% Cash $8,658 Accounts Receivable $4,767 Sales $74,452 # Current Assets $20,836 Asset Turnover 2.34 Inventory $7,411 + Total Assets $31,785 Other Assets N/A Fixed Assets $10,949 Third Option: Improve the training of the distribution center team to reduce the errors in order fill. The direct impacts caused by the third option are: Sales increase by 2% . . COGS increase by 2% Inventory increases by 1% Transportation, warehousing, and other operating costs remain the same. Assume interest is unchanged. Taxes increase from 161 to 270. Cash, accounts receivable, other assets, fixed assets remain the same. . (a) Fill the numbers in the strategic profit model below. Show detailed analysis for each change you make in the strategic profit model. (10 points) Note: it is easier to conduct the analysis in the Excel (you can continue use the worksheet used in class on Feb 21), in which case, please submit the spread sheet (not screenshot of spread sheet) as an attachment. Sales $ Gross Profit $ COGS $ Logistics Costs $ Net Income $ Total Op. Costs Profit Margin % + - + Other Op. Costs $6,208 Sales Taxes & Interest $ Return on Assets % Cash $8,658 Accounts Receivable $4,767 Sales $ + Asset Turnover Current Assets $ Inventory $ + Total Assets $ Other Assets N/A Fixed Assets $10,949 (b) The table below summarizes and compares the financial impact of the three alternatives. Fill the numbers for option 3. Indicate which option would you recommend and point out any potential concerns of the option. (4 points) Item Base Option 1 Option 2 Option 3 Sales $74,452 $74,452 $74,452 Total Operating cost $26,161 $25,630.2 $25,065.85 Net income $345 $664.8 $1151.15 Inventory turnover 6.42 6.42 6.75 Asset turnover 2.34 2.34 2.37 Profit margin 0.46% 0.89% 1.55% ROA 1.09% 2.09% 3.66%