Case 2: Increase Account Receivable Collection 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 5.00% Transportation 2.00% Handling 2.00% Storage 3.00% Promotions $840 Fixed Expenses Sales $ Asset Turnover $ Total Assets $ Inventory Current Assets $ Accounts Receivable (15%) Fixed Assets $1,000 Other Current Assets 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 firm to reduce accounts receivable from 20% of sales to 15% of sales. . . 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): $7.50 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