Question: Based on the Business Performance calculation below, through extensive outsourcing and OEM effort, the company is able to reduce the Fixed Asset by 50% (i.e.,

 Based on the Business Performance calculation below, through extensive outsourcing and

Based on the Business Performance calculation below, through extensive outsourcing and OEM effort, the company is able to reduce the Fixed Asset by 50% (i.e., Fixed Asset becomes $1,450), please provide clear calculation on how the 50% reduction of Fixed Asset affects Profit Margin, Asset Turnover Ratio, and ROI Business Performance before Improvement SALES $5,000 LABOR $700 MINUS NET INCOME MATERIALS COGS $400 $2.300 $3,800 PROFIT MARGIN DIVIDED BY OTHER COSTS OVERHEAD SALES $5,000 $800 $800 ROI 10.0% INVENTORY $500 SALES $5,000 RECEIVABLE $300 Current Assets Asset Turnover DIVIDED BY Ratio 1.25 $1,100 Total Assets PLUS $4,000 CASH $300 Fixed Assets $2.900 Assets Operating Costs MULTIPLY

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