Tamarisk Furniture Corp. is nationally recognized for making high$-$quality products. Management is concerned that it is not fully

exploiting its brand power. Tamarisk's production managers are also concerned because their plants are not operating at anywhere

near full capacity. Management is currently considering a proposal to offer a new line of affordable furniture.

Those in favor of the proposal $($including the vice president of production$)$ believe that, by offering these new products, the company

could attract a clientele that it is not currently servicing. Also, it could operate its plants at full capacity, thus taking better advantage of

its assets.

The vice president of marketing, however, believes that the lower$-$priced $($and lower$-$margin$)$ product would have a negative impact on

the sales of existing products. The vice president believes that $$10,000,000$ of the sales of the new product will be from customers

that would have purchased the more expensive product but switched to the lower$-$margin product because it was available. $($This is

often referred to as cannibalization of existing sales.$)$ Top management feels, however, that even with cannibalization, the company's

sales will increase and the company will be better off.

The following data are available.

$($a$)$

Compute Tamarisk's return on assets, profit margin, and asset turnover, both with and without the new product line. $($Round answers to

$3$ decimal places, e$.$g$.15\mathrm{.}257.)$

Return on assets

Profit margin

Asset turnover