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. (Enter your response rounded to the nearest dollar.)

\begin{tabular}{ll} \hline Earnings and Expenses (Year Ending January 2012) \\ \hline Sales & $40,000,000 \\ Cost of goods sold (COGS) & $35,000,000 \\ Pretax earnings & $3,400,000 \\ \hline Selected Balance Sheet Items & \\ \hline Merchandise Inventory & $1,700,000 \\ Total assets & $11,000,000 \\ \hline \end{tabular} a. Dulaney's current profit margin is 8.5%. (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 5%. 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 5% decrease in merchandise costs. (Enter your response rounded to the nearest dollar.)