Problem $2-5($Static$)$

Noble Bicycles of Glen Arbor, Michigan, is a small batch manufacturer of high$-$end bicycles. That is$,$ it typically builds bicycles in

batches of one to three units. Quality is high, only to be expected when the typical bicycle frame costs $$2,500$ and up$.$ Yet, profits have

not kept pace with top management's expectations. Management has set a goal of generating a minimum of $25$ percent return on

assets. As a result of a corporate SWOT analysis, management has identified one critical threat: the costs at Noble are simply too high

$-$and one important opportunity: because of the flexibility of operations and the experience of the design team, many of whom are

either professional or serious amateur bicyclists, Noble is well positioned to become an innovation leader. A top management team

consisting of the marketing director, the finance director, the corporate vice president, the purchasing director, and the director of

operations management has developed two alternative strategies:

Focus on reducing costs through the application of lean systems and procedures.

Focus on product innovation.

To assess the two approaches, the team has generated the following table. Use Figure $2\mathrm{.}3.$

a$.$ What is Noble Bicycles' current, lean proposal and innovation proposal ROA?

Note: Round your answers to $2$ decimal places.

Answer is complete but not entirely correct. $($im having a really hard figuring out the innovation and lean proposal$)$