SSC110G-A SS202 Q-3 Consider Folger Corporation Could Cut its COGS by 13%, 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 $60,000,000 calculating: $40,000,000 Cost of goods sold (COGS) (a) New profit margin $6,000,000 Pretax Earnings (b) New ROA Selected Balance Sheet Items Merchandise inventory $3,500,000 Total Assets $9,000,000 New Pretax Profit margin % New Return on assets (ROA) %