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Mangrich 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 company's current offerings, but offer a complementary fit to its existing product line. Michael Powell, senior production department manager, is very excited about the high-tech new equipment that will have to be acquired to produce the new products. Linda Huang, the company's CFO, has provided the following projections based on results with and without the new products.


Without New Products With New Products
Sales $11,164,460
$19,045,460
Net income $527,400
$1,275,260
Average total assets $5,078,170
$15,293,460

Compute the company's return on assets ratio, profit margin ratio, and asset turnover ratio, both with and without the new product line.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9956623

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