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Old MathJax webview are The following data used to demonstrate purchasing's potential profit-leverage and return on assets effects. Selected data are provided in the table
Old MathJax webview
are The following data used to demonstrate purchasing's potential profit-leverage and return on assets effects. Selected data are provided in the table below: Earnings & Expenses Sales $4,500,000 Merchandise Costs $3,150,000 Net Income $ 205,650 Selected Balance Sheet Items $1,852,941 Merchandise Inventory Total Assets $5,294,118 What effect would a 3% reduction in merchandise costs have profit margin and return on assets? Further, by What effect would a 3% reduction in merchandise costs have profit margin and return on assets? Further, by how much would sales have to increase to achieve the same improvement in net income as created by the 3% reduction in merchandise costs? Round the dollar calculations for Earnings & Expenses and Selected Balance Sheet Items to the nearest penny. Round all other values to four decimal places. When entering values, do not include $ signs or commas. Enter your Profit Margin and Return on Assets values as proportions (e.g., .0543) not as percentages. Baseline Earnings & Expenses New Value Sales $4,500,000 Merchandise Costs $3,150,000 Net Income $205,650
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