A manufacturer of consumer goods notes that the price of raw materials needed for the firm's products have increased. Which impact should the firm expect to see if it is unable to pass those increases on to consumers in the form of higher prices?

Fixed asset turnover measures how efficiently a company uses its fixed assets to generate sales. An increase in raw material costs without a corresponding increase in prices does not directly influence the efficiency of fixed asset utilization. Therefore, this choice is unrelated to the impact of raw material price increases on profit margins.

The debt-to-equity ratio indicates a company's financial leverage by comparing its total liabilities to shareholders' equity. Changes in raw material costs and pricing strategy do not directly affect this ratio. A decrease in profit margins could lead to a potential increase in this ratio if the firm incurs more debt to maintain operations, making this choice incorrect.

Return on assets (ROA) measures how efficiently a company utilizes its assets to generate profit. An increase in costs without being able to raise prices typically leads to lower net income, thereby decreasing ROA. Hence, this choice does not align with the expected impact of rising raw material prices.