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University Hero is considering expanding operations beyond its healthy sandwiches. Jim Axelrod, vice president of marketing, would like to add a line of smoothies with

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University Hero is considering expanding operations beyond its healthy sandwiches. Jim Axelrod, vice president of marketing, would like to add a line of smoothies with a similar health emphasis. Each smoothie would include two free health supplements, such as vitamins, antioxidants, and protein. Jim believes smoothie sales should help fill the slow mid-afternoon period. Adding the line of smoothies would require purchasing additional freezer space, machinery, and equipment. Jim provides the following projections of net sales, net income, and average total assets in support of his proposal. Required: 1. Calculate University Hero's retum on assets, profit margin, and asset tumover for sandwiches only. 2. Calculate University Hero's return on assets, profit margin, and asset furnover for sandwiches and smoothies. 3. Based on these ratios, what recommendation would you make if University Hero is considering expanding operations beyond its healthy sandwiches

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