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Splish Brothers International is considering a significant expansion to its product line. The sales force is excited about the opportunities that the new products will

Splish Brothers International is considering a significant expansion to its product line. The sales force is excited about the opportunities that the new products will bring. The new products are a significant step up in quality above the companys current offerings, but offer a complementary fit to its existing product line. Fred Riddick, senior production department manager, is very excited about the high-tech new equipment that will have to be acquired to produce the new products. Barbara Dyson, the companys CFO, has provided the following projections based on results with and without the new products.

Without New Products

With New Products

Sales revenue

$11,816,400 $15,797,600

Net income

$472,656 $947,856

Average total assets

$5,908,200 $13,540,800

(a) Compute the companys return on assets, profit margin, and asset turnover, both with and without the new product line. (Round answers to 0 decimal places, e.g. 2% and asset turnover to 1 decimal place, e.g. 6.2)

Without new products

With new products

Return on assets

enter percentages rounded to the nearest whole

%

enter percentages rounded to the nearest whole

%

Profit margin

enter percentages rounded to the nearest whole

%

enter percentages rounded to the nearest whole

%

Asset turnover

enter the asset turnover rounded to 1 decimal places

enter the asset turnover rounded to 1 decimal places

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