In response to complaints about high prices, a grocery chain runs the following advertisin

In response to complaints about high prices, a grocery chain runs the following advertisin

In response to complaints about high prices, a grocery chain runs the following advertising campaign: “If you pay your child $1 to go buy $31 worth of groceries, then your child makes about twice as much on the trip as we do.” You’ve collected the following information from the grocery chain’s financial statements:

What is the child’s profit margin? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

 

Child’s profit margin             %

 

What is the store’s profit margin? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

 

Store’s profit margin             %

 

What is the store's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

 

ROE             %

(millions)
Sales	$	780.00
Net income		12.75
Total assets		385.00
Total debt		159.00