b) The profit margin for Dominos is 5.6% and is computed by Net Income / Revenue, 87,917/1,570,894. A profit margin of 5.6% means that for each dollar of sales that Domino's generates it is contributing 5.6 cents to its net income. c) Gross profit is computed by (Revenue Cogs) / Revenue. The gross profit percentage for the latest three years: 2009: (1,425,114 1,061,853) / 1,425,114 = 25.5% 2010: (1,404,057 1,017,081) / 1,404,057 = 27.5% 2011: (1,570,894 1,132,305) / 1,570,894 = 27.9 There is a slight increasing trend over the last three years. d) Return on Equity (ROE) measures how profitable was Dominos by revealing how much profit it generated with the money stockholders have invested. It is computed by Net Income / Shareholders Equity. The ROE for the last three years is the following: 2009: 61,354 / -1,278,125 = -4.8% 2010: 79,744 / -1,320,994 = -6% 2011: 87,917 / 1,210,651 = -7.3% There is an increasing negative trend which is bad. It shows that management isnt doing very well because the trend should be positively increasing. Please answer the following:e) In comparison to the previous year, has the corporation improved its ability to generate a profit? Justify your answer with the ratios you calculated in b, c and d. Does management offer an explanation for any changes or stability in the profitability of the corporation? (The company is Domino's pizza)