Question: it can only be rounded to one decimal place please Problem 17-2 (LO 17-1) A service company has the... A service company has the following

it can only be rounded to one decimal place please

Problem 17-2 (LO 17-1) A service company has the... A service company has the following financial information (in millions of $) Sales Cost of outsourced facilitating goods Cost of in-house services provided Administrative costs Pretax earnings $ 510 210 199 77 24 (Do not round intermediate calculations. Round answers to 1 decimal place.) a. What is the profit leverage effect of reducing the cost of the facilitating goods in this company? Profit leverage b. It has been suggested that the in-house services costs could be reduced by 10 percent in the coming year by implementing lean systems. What effect would this have on earnings increase in percentage? Pre-Tax Earnings increases by c. What is the profit leverage effect of in-house services relative to profits? Profit leverage factor

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