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Discuss the potential effect on return on assets

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Reference no: EM13532099

Lauren Rado, a marketing executive for Fresh Views Inc., has proposed expanding its product line of framed graphic art by producing a line of lower quality products. These would require less processing by the company and would provide a lower profit margin. Tom Hogle, the company"s CFO, is concerned that this new product line would reduce the company"s return on assets. Discuss the potential effect on return on assets that this product might have.

Reference no: EM13532099

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