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Given the financial details of a company, answer the questions: Item Value ($ millions) Total Sales 1000 Cost of Goods Sold 600 Operating Expenses 250

  1. Given the financial details of a company, answer the questions:

Item

Value ($ millions)

Total Sales

1000

Cost of Goods Sold

600

Operating Expenses

250

Net Income

90

  1. a. Calculate the Gross Profit Margin. b. Compute the Operating Profit Margin. c. Determine the Return on Sales (Net Profit Margin). d. If the company wants to achieve a Net Income of $150 million, what should be the maximum allowable Operating Expenses?

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