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Calculate the pretax income and the return on investment for a company with the sales and expenses as follows: Sales $40,000,000 Cost of goods sold

Calculate the pretax income and the return on investment for a company with the sales and expenses as follows:

Sales $40,000,000

Cost of goods sold $25,000,000

Selling and administrative expense $5,000,000

Interest expense $1,000,000

Income taxes $5,850,000

Shareholders equity $800,000

Comment on the companys profitability.

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