Q-3 Consider Folger Corporation Could Cut its COGS by 3%, update earnings and expenses of Folger Corporation and explain the Financial Impact of Cost Savings in the Folger Corporation. Earnings and Expenses (in $ millions) Explain the Profit leverage effect by Sales $10,000,000 calculating: Cost of goods sold (COGS) $5,000,000 (a) New profit margin (b) New ROA Pretax Earnings $500.000 Selected Balance Sheet Items Merchandise inventory $80,000 Total Assets $2.000.000 New Pretax Profit margin New Return on assets (ROA)