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

b. The company’s management has set a target for the total asset turnover ratio of 3.25 for next year. If there is no change in the total assets of the company, what will the new net sales level have to be 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 net sales?