Can you assist me with step by step instructions in solving this problem? Transcribed Image Text: 言 ANot secure ezto.mheducation.com/hm.tpx Manyops, Inc., is a manufacturing firm that has experienced strong

Can you assist me with step by step instructions in solving this problem? Transcribed Image Text: 言
ANot secure ezto.mheducation.com/hm.tpx
Manyops, Inc., is a manufacturing firm that has experienced strong competition in its traditional business.
Management is considering joining the trend to the “service economy” by eliminating its manufacturing operations
and concentrating on providing specialized maintenance services to other manufacturers
Manyops, Inc., has had a target ROI of 17% on an asset base that has averaged $8 million. To achieve this ROI,
average total asset turnover of 2 was required. If the company shifts its operations from manufacturing to providing
maintenance services, it is estimated that average total assets will decrease to $5 million
Management of
Required
a. Calculate net income, margin, and sales required for Manyops, Inc., to achieve its target ROl as a manufacturing
firm. (Enter your “Sales” and “Net income” answers in millions (i.e., 10,000,000 should be entered as 10). Do
not round intermediate calculations. Round your answers to 2 decimal places.)
Net income
Margin
Sales
million
million
b·Assume that the average margin of maintenance service firms is 2.7%, and that the average ROI for such firms is
also 16%. Calculate the net income, sales, and total asset turnover that Manyops, Inc., will have if the change to
services is made and the firm is able to earn an average margin and achieve an 16% RQI (Enter your “sales”
and “Net income” answers in millions i.е., 10,000,000 should be entered as 10): Do not round intermediate
calculations. Round your answers to 2 decimal places.)
Net income
Sales
Turnover
million
million

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