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What happens if Cube Ltd.  Can save 2% in purchasing costs? The purchasing cost is 85% of COGS. Analyze the Financial Impact of purchase savings in terms of Pretax profit margin, ROA, and Sales. Additional Information is as follows:     Selected information about Cube Ltd. Sales  BDT 10 million COGS  5.75 million Pretax Earnings 1.23 million Merchandise Inventory 1.89  million Total Asset 8 million

What happens if Cube Ltd.  Can save 2% in purchasing costs? The purchasing cost is 85% of COGS. Analyze the Financial Impact of purchase savings in terms of Pretax profit margin, ROA, and Sales. Additional Information is as follows:     Selected information about Cube Ltd. Sales  BDT 10 million COGS  5.75 million Pretax Earnings 1.23 million Merchandise Inventory 1.89  million Total Asset 8 million

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What happens if Cube Ltd.  Can save 2% in purchasing costs? The purchasing cost is 85% of COGS. Analyze the Financial Impact of purchase savings in terms of Pretax profit margin, ROA, and Sales. Additional Information is as follows:  

 

Selected information about Cube Ltd.

Sales 

BDT 10 million

COGS 

5.75 million

Pretax Earnings

1.23 million

Merchandise Inventory

1.89  million

Total Asset

8 million
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