Shonrock International is considering a significant expansion to its product line. The sales force is excited about the opportunities that the new products will bring. The new products are a significant step up in quality above the company€™s current offerings, but offer a complementary fit to its existing product line. Richard Farley, senior production department manager, is very excited about the high-tech new equipment that will have to be acquired to produce the new products. Donna Beson, the company€™s CFO, has provided the following projections based on results with and without the new products.

Instructions
(a) Compute the company€™s return on assets, profit margin, and asset turnover, both with and without the new product line.
(b) Discuss the implications that your findings in part (a) have for thecompany€™s

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Without New Products $10,000,000 With New Products $16,000,000 Sales revenue Net income Average total assets $500,000 $960,000 $5,000,000 $12,000,000