In excel, use the following information to determine the changes in the following: cost of service failures (including invoice discount, rehandling cost, lost sales), and net income, and Return on Assets.

Order fill decreases from 96% to 92% with an inventory reduction of 10%.

• Average price per order $125
• Gross margin per order $42
• Annual orders 100,000
• Of orders not filled correctly
  • Rectified orders 70%
    • With invoice discount $25
    • With additional handling $15
  • Orders refused 30%
• Warehousing cost $500,000
• Other operating costs $800,000
• Cash $2,000,000
• Accounts receivable $1,500,000
• Fixed assets $20,000,000
• Tax rate 40%
• Transportation cost $800,000
• Average inventory $900,000
• Interest cost $700,000
• Inventory carrying cost 15% per year