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The following data are used to demonstrate purchasing's potential return on assets effect. Selected data are provided in the table below: Earnings & Expenses Sales
The following data are used to demonstrate purchasing's potential return on assets effect. Selected data are provided in the table below: Earnings & Expenses Sales $2,750,000 Merchandise Costs $2.062.500 Net Income Selected Balance Sheet Items $178.750 Merchandise Inventory $802,089 Total Assets $2.291.667 What reduction in merchandise cost (as a percentage) would be necessary to increase ROA to 9.9% Assume that Merchandise Inventory decreases at the same percentage rate as Merchandise Costs, not the same dollar value Enter your Merchandise Cost Reduction as a percentage rounded to four decimal places (e.g. 10.1234). Only round your final answer (not intermediate calculations). Only provide the numeric value, do not enter the "%sign in your
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