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Please answer the rest of b and C; answers are incorrect. Please zoom in for more details or open image in a new tab. If

Please answer the rest of b and C; answers are incorrect.

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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 8.3 %. (Enter your response rounded to one decimal place.) Dulaney's current yearly ROA is 138.33 %. (Enter your response rounded to one decimal place.) b. Suppose COGS and merchandise inventory were each cut by 15%. The new pretax profit margin is 21.1 %. (Enter your response rounded to one decimal place.) The new ROA is 300.8 %. (Enter your response rounded to one decimal place.) c. 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 15% decrease in merchandise costs. (Enter your response rounded to the nearest dollar.) Earnings and Expenses (Year Ending January 2012) Sales $100,000,000 Cost of goods sold (COGS) $85,000,000 Pretax earnings $8,300,000 Selected Balance Sheet Items Merchandise Inventory $4,150,000 Total assets $6,000,000

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