The next three questions (1-3) are based on chapter 7 problem 1 on page 213.

Dulaney's current profit margin is ________ % (round answer to nearest counting number)

Dulaney's current returan on assets (ROA) is ________ % (round answer to nearest counting number)

Suppose COGS and merchandise inventory were each cut by 10%.

The new profit margin is _______ %. (round answer to nearest counting number)

The new ROA is _________ %. (round answer to nearest counting number)

Based on the current profit margin, how much additional sales would Dulaney have to generate in order to have the same effect on pretax earnings as a 10% decrease in merchandise costs? (answer in format of $500,000 - no decimal place, using $ and thousand separator)

Dulaney's Stores has posted the following yearly earnings and expenses: EARNINGS AND EXPENSES (YEAR ENDING JANUARY 2012) Sales $50,000,000 Cost of goods sold (COGS) $30,000,000 Pretax earnings $5,000,000 SELECTED BALANCE SHEET ITEMS Merchandise Inventory $2,500,000 Total assets $8,000,000