Stacy Simmons, a marketing executive for Fresh Views Inc., has proposed expanding its prod- uct line of

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Stacy Simmons, a marketing executive for Fresh Views Inc., has proposed expanding its prod- uct line of framed graphic art by producing a line of lower-quality products. These would require less pro- cessing by the company and would provide a lower profit margin. Terry Concord, the company's CFO, is concerned that this new product line would reduce the company's return on assets. Discuss the potential effect on return on assets that this product might have.

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Financial Accounting Tools For Business Decision Making

ISBN: 9780471730514

4th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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