Bumblebee Enterprises is considering adding another product line. Below are results from last year and pro forma (expected) results with the addition of the new line. Little change in sales from the current product lines is expected.
|
(In millions) |
Last Year |
Pro Forma |
|
Sales |
$260 |
$322 |
|
Net income |
24 |
32 |
|
Total assets |
300 |
372 |
Analyze the changes in effectiveness, efficiency, and return on assets that would be expected if the product line were added. Would you recommend addition of the product line?