Nutmeg Houseware Inc. has an operating profit margin of 10.3 percent on revenues of $24,547,125 and total assets of $8,652,352.

a. Find the company’s total asset turnover ratio and its operating profit (EBIT).

b. If the company’s management has set a target for the total asset turnover ratio to be 3.25 next year without any change in the total assets of the company, what will have to be the new sales level for the next year? Calculate the dollar change in sales necessary and the percentage change in sales necessary.

c. If the operating profit margin declines to 10 percent, what will be the EBIT at the new level of sales?