Operations & Supply Chain Management: Complete Part A & B for this problem, thank you. As the operations manager for Valley Kayaks $($as described in the previous problem$),$ you find yourself faced with an interesting

situation. Marketing has informed you that they have lost a number of sales because of a lack of inventory. Kayaks, being seasonal in

nature, have to be in stock at your dealers if they are to be sold $($customers are not willing to wait$).$ The director of marketing proposes

that you increase inventories by $25$ percent $($a major investment to you$).$ She has also given the information in the following table. Use

Figure $2\mathrm{.}3.$

a$.$ Using the information given, complete the following table and calculate the ROA for current values and new values.

b$.$ Would the projected change in ROA justify the inventory investment?

Required A

Using the information given, complete the following table and calculate the ROA for current values and new values.

Note: Round "ROA" to $2$ decimal places.

Required $A$

Required B

Would the projected change in ROA justify the inventory investment?

Yes

No