Earnings and Expenses $($Year Ending January $2012)$

Sales $$59,000,000$

Cost of Goods Sold $($COGS$)$ $$44,000,000$

Pretax Earnings $$5,074,000$

Selected Balance Sheet Items

Merchandise Inventory $$2,537,000$

Total Assets $$7,000,000$ 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 $8\mathrm{.}6\%.($Enter your response rounded to one decimal place.$)$

Dulaney's current yearly ROA is

$\%.($Enter your response rounded to one decimal place.$)$

b$.$ Suppose COGS and merchandise inventory were each cut by $10\%.$

The new pretax profit margin is $16\mathrm{.}1\%.($Enter your response rounded to one decimal place.$)$

The new ROA is $\%.($Enter your response rounded to one decimal place.$)$