and return on assets of the company as presented car and variable cost/car stay the same) and that in Exhibit 1.6. (Hint: Profit margin and return on nothing else changes in the financials. If sales assets are negative.) do improve to 450,000 cars, what would be the To better understand how the SCIM works, com- expected profit margin, asset turnover, and return plete the following table. Assume that the change on assets if it were possible for the company to do suggested is only to the single account, and the other this? accounts are the same as presented in Exhibit 1.6. c. What questions might you explore with manage- The change can be described in simple "up," "down." ment to evaluate the assumptions that were made in or "does not change" terms. your calculations