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Mindspin Labs Inc. is a manufacturing firm that has experienced strong competition in its traditional business. Monagement is considering joining the trend to the service

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Mindspin Labs Inc. is a manufacturing firm that has experienced strong competition in its traditional business. Monagement is considering joining the trend to the service economy by eliminating its manufacturing operations and concentrating on providing specialized maintenance services to other manufacturers. Management of Mindspin Labs has had a target ROI of 18% on an asset base that has averaged $7 million. To achieve this ROI, average total asset turnover of 3.0 was required. If the company shifts its operations from manufacturing to providing maintenance services, it is estimated that average total assets will decrease to $2 milion Required: a. Calculate net income, margin, and sales required for Mindspin Labs to achieve its target ROI as a manufacturing firm, b. Assume that the average margin of maintenance service firms is 2.5%, and that the average Rol for such firms is also 18% Calculate the net income, sales, and total asset turnover that Mindspin Labs will have if the change to services is made and the firm is able to earn an average margin and achieve an 18% ROI Complete this question by entering your answers in the tabs below. Required A Required B Calculate net income, margin, and sales required for Mindspin Labs to achieve its target ROI as a manufacturing firm. (Enter "Sales" and "Net income" answers in millions (ie, 10,000,000 should be entered as 10). Round "Net Income" to 2 decimal places.) Net income Margin Sales 0.36 million 6% 14 million $ Required B > Complete this question by entering your answers in the tabs below. Required A Required B Calculate net income, margin, and sales required for Mindspin Labs to achie "Sales" and "Net inccine" answers in millions (i.e., 10,000,000 should be ent places.) Net income $ 0.36 X million 6 % Margin Sales $ 14 x million Complete this question by entering your answers in the tabs below. Required A Required B Assume that the average margin of maintenance service firms is 2.5%, and Calculate the net income, sales, and total asset turnover that Mindspin Labs the firm is able to earn an average margin and achieve an 18% ROI. (Enter 10,000,000 should be entered as 10). Round your answers to 2 decimal plac Net income 0.36 million 14.40 million Sales $ Turnover 1.60

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