Question: Based on the current profit margin in part a., Dulaney would have to generate$enter your response herein additional sales in order to have the same

Based on the current profit margin in part a., Dulaney would

Based on the current profit margin in part a., Dulaney would have to generate$enter your response herein additional sales in order to have the same effect on pretax earnings as a 15%

decrease in merchandise costs. (Enter your response rounded to the nearest dollar.)

Dulaney's Stores has posted the following yearly earnings and expenses. Click the icon to view the yearly data. a. Dulaney's current profit margin is \%. (Enter your response rounded to one decimal place.) Dulaney's current yearly ROA is \%. (Enter your response rounded to one decimal place.) b. Suppose COGS and merchandise inventory were each cut by 15%. The new pretax profit margin is \%. (Enter your response rounded to one decimal place.) The new ROA is \%. (Enter your response rounded to one decimal place.) c. Based on the current profit margin in part a., Dulaney would have to generate $ in additional sales in order to have the same effect on pretax earnings as a 15% decrease in merchandise costs. (Enter your response rounded to the nearest dollar.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Dulaney's Stores has posted the following yearly earnings and expenses. LOADING... Click the icon to view the yearly data. Part 2 a. Dulaney's current profit margin is enter your response here %....

c. Based on the current profit margin in part a., Dulaney would have to generate $enter your response here in additional sales in order to have the same effect on pretax earnings as a 15% decrease in...

Dulaney ' s Stores has posted the following yearly earnings and expenses. Earnings and Expenses ( Year Ending January 2 0 1 2 ) Sales $ 4 2 comma 0 0 0 comma 0 0 0 4 2 , 0 0 0 , 0 0 0 Cost of goods...

Dulaney's Stores has posted the following yearly earnings and expenses. Click the icon to view the yearly data. a . Dulaney's current profit margin is 9 . 5 % . ( Enter your response rounded to one...

I JUST NEED HELP WITH THE VERY LAST PART ON THIS QUESTION. PLEASE MAKE SURE IT IS CORRECT BECAUSE I ONLY HAVE ONE MORE TRY FOR IT, Dulaney's Stores has posted the following yearly earnings and...

c. Based on the current profit margin in part a., Dulaney would have to generate $_____ in additional sales in order to have the same effect on pretax earnings as a 5% decrease in merchandise costs....

Granville Community College is considering outsourcing the maintenance of its buldings and other facilities to an outside firm for $500,000 per year. The 2015 budget is as follows. Click the icon to...

What is part C? Question 1, Problem 1 E Homework: HW11 Part 5 of 5 Save Dulaney's Stores has posted the following yearly earnings and expenses. Click the icon to view the yearly data. a. Dulaney's...

Dulaney's Stores has posted the following yearly earnings and expenses. B Click the icon to view the yearly data. a. Dulaney's current profit margin is %. (Enter your response rounded to Pne decimal...

The Whispering Company issued $360,000 of 11% bonds on January 1, 2017. The bonds are due January 1, 2022, with interest payable each July 1 and January 1. The bonds were issued at 104. Prepare the...

Acme Manufacturing has the following standard cost sheet for one of its products: Direct materials (6 ft. @ $10) $60.00 Direct labor (1.5 hours @ $20) 30.00 Variable overhead (1.5 hours @ $8) 12.00...

Another design ( C ) has been proposed and it has an IRR of 9 % . Which project would you recommend?

16 . Efficiency in the production possibilities model Suppose Germany produces only two goods : corn and tablets . The following graph shows Germany's current production possibilities frontier, along...

3. If in some country personal consumption expenditures in a specific year are $50 billion, purchases of stocks and bonds are $30 billion, net exports are $10 billion, government purchases are $20...

7. The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP. Indicate in each calculation whether you are inflating or deflating the...

5. Suppose that California imposes a sales tax of 10 percent on all goods and services. A Californian named Ralph then goes into a home improvement store in the state capital of Sacramento and buys a...