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Problem 3 - 2 1 Profit Margin [ LO 4 ] In response to complaints about high prices, a grocery chain runs the following advertising
Problem Profit Margin LO
In response to complaints about high prices, a grocery chain runs the following advertising campaign: If you pay your child $ to go buy $ worth of groceries, then your child makes twice as much on the trip as we do Youve collected the following information from the grocery chains financial statements:
in millions
Sales $
Net income
Total assets
Total debt
a What is the profit margin for the child as a percentage of what they spend and the profit margin for the store? Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
b What is the store's ROE? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
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