Problem 3-21 Profit Margin [LO4]

In response to complaints about high prices, a grocery chain runs the following advertising campaign: If you pay your child $6 to go buy $50 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	$ 590.0
Net income	35.4
Total assets	490.0
Total debt	360.0

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 2 decimal places, e.g., 32.16.)
b.	What is the store's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)