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Dulaney's Stores has posted the following yearly earnings and expenses. Click the icon to view the yearly data. a. Dulaney's current profit margin is %.
Dulaney's Stores has posted the following yearly earnings and expenses. Click the icon to view the yearly data. a. Dulaney's current profit margin is \%. (Enter your response rounded to one decimal place.) \begin{tabular}{lc} \hline Earnings and Expenses (Year Ending January 2012) \\ \hline Sales & $65,000,000 \\ Cost of goods sold (COGS) & $50,000,000 \\ Pretax earnings & $7,085,000 \\ \hline Selected Balance Sheet Items & \\ \hline Merchandise Inventory & $3,542,500 \\ Total assets & $7,000,000 \\ \hline \end{tabular} Dulaney's Stores has posted the following yearly earnings and expenses. Click the icon to view the yearly data. Dulaney's current profit margin is \%. (Enter your response rounded to one decimal place.) Dulaney's current yearly ROA is 4 \%. %. (Enter your response rounded to one decimal place.) o. Suppose COGS and merchandise inventory were each cut by 20%. The new pretax profit margin is 28%. (Enter your response rounded to one decimal place.) The new ROA is (Enter your response rounded to one decimal place.) . Based on the current profit margin in part a., Dulaney would have to generate $ in additional sales in order to have the same effect on pretax earnings as a 20% decrease in merchandise costs. (Enter your response rounded to the nearest dollar.)
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