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7. Medifast, Inc. is a producer and marketer of weight-loss meals and other health and weight-loss products. The following are selected financial data for the

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7. Medifast, Inc. is a producer and marketer of weight-loss meals and other health and weight-loss products. The following are selected financial data for the company for the period 2006-2010 2006 2007 2008 2009 2010 5.2 7.2 4.6 99.5 100.0 100.0 100.0 100.0 1.9 1.6 13.1 6.0 7.0 Profit margin (%) Retention ratio (%) Asset turnover (X) Financial leverage (x) Growth rate in sales (%) 1.3 1.6 46.8 2.0 1.7 84.6 2.1 1.6 25.9 2.6 1.6 57.1 Source: Data from Medifast 2006-2010 annual reports a. Calculate Medifast's annual sustainable growth rate for the years 2006 through 2010. b. Comparing the company's sustainable growth rate with its actual growth rate in sales, what growth management challenge did Medifast face over this period? e. How did the company cope with this challenge

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