Global supermarket chain Carrefour is likely to be confronted with 5% inflation in its cost of goods sold (with stable volume). Four analysts have their own expectations about how the company will react. Exhibit 26 shows Carrefour’s 2011 results, and Exhibit 27 shows the four analysts’ estimates of input prices, volume growth, and pricing.

i. What are each analyst’s predictions for gross profit and gross margin?
ii. Who has the highest gross margin in his model?
iii. Who has the highest absolute gross profit in his model?

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EXHIBIT 26 Carrefour Data ( millions, unless noted) Sales Cost of goods sold Gross profit Gross margin 2011 81,271 64,912 16,359 20.1%