The following data were extracted from the 2016 financial statements of Penske Automotive Group, Inc. This company operates automobile dealerships, mostly in the United States, Canada, and Western Europe, and commercial truck dealerships in Australia, New Zealand, and the United Kingdom. The company had 355 dealerships as of the end of 2016. Dollar amounts are in millions.

Required
a. Compute Penske’s gross margin percentage for 2016 and 2015.
b. Compute Penske’s average days to sell inventory for 2016 and 2015.
c. How much higher or lower would Penske’s earnings before taxes have been in 2016 if its gross margin percentage had been the same as it was in 2015? Show all supporting computations.

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December 31, 2016 $20,118.5 17,151.9 2,966.6 574.9 342.9 3,408.2 December 31, 2015 Revenue Cost of sale Gross profit Operating income before taxes Net income Ending inventory $19,284.9 16,417.4 2,867.5 566.5 326.1 3,463.5