Option #1: Analysis of Payton Furniture Corp.PaytonFurniture Corp. is nationally recognized for making high-qualityproducts. Management is concerned that the company is not fully exploiting its brand power. Payton’s production managers are alsoconcerned because their plants are not operating at near full capacity.Management is currently considering a proposal to offer a new line ofaffordable furniture.Those in favor of the proposal (includingthe vice president of production) believe that, by offering these newproducts, the company could attract a clientele that it is notcurrently servicing. It could also operate its plants at full capacity,thus taking better advantage of its assets.The vice president ofmarketing, however, believes that the lower-priced (and lower-margin)product would have a negative impact on the sales of existing products.The vice president believes that $10,000,000 of the sales of the newproduct will be from customers that would have purchased the moreexpensive product but switched to the lower-margin product because itwas available. (This is often referred to as cannibalization ofexisting sales.) Top management feels, however, that even withcannibalization, the company’s sales will increase and the company willbe better off.The following data are available:(In Thousands)Current ResultsProposed Results without CannibalizationProposed Results with CannibalizationSales Revenue$45,000$60,000$50,000Net Income$12,000$13,000$12,000Average total assets$100,000$100,000$100,000Instructions:Compute Payton’s return on assets, profit margin, and asset turnover, both with and without the new product line.Discuss the implications that your findings in part (A) have on Payton’s decision.Are there any other options that Payton should consider? What impact would each of these have on the above ratios?Showyour work and use MS Excel or Word for your submission. The writtenportion of your assignment should be 4-6 pages in length with documentand citation formatting conformity with the CSU-Global Guide to Writing and APA Requirements.