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    VIOHAN's Avatar
    VIOHAN Posts: 2, Reputation: 1
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    #1

    Aug 4, 2006, 08:59 PM
    Managerial Finance help
    In response to complains about high prices, a grocery chain runs the following advertising campaign: if you pay your child 50 cents to go buy 25 worth of groceries, then your child makes twice as much on the trip as we do” Use this information below to evaluate the grocery chin’s claim. What is the basis for the statement? Is this claim misleading? Why?

    Sales 550millio net income5.5milion total assents 140 million total dept 90 million
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Aug 5, 2006, 04:02 AM
    Please don't ask or expect us to do your homework for you. If you want to post your answer for the assignment we may be able to critique it for you. But we aren't going to do your work for you.
    VIOHAN's Avatar
    VIOHAN Posts: 2, Reputation: 1
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    #3

    Aug 6, 2006, 02:48 PM
    Thanks for at least have the time to respond of course I been doing my homework but I am confused on the answer .My answer is that net income over sales give me .01 and divide 50/25 is 2 twice as much as the company do so the statement is not misleading is true . Thank again for the advise.This is the first time I ask a question I am glad to learn how I suppose to ask to get help.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #4

    Aug 6, 2006, 07:25 PM
    Well as you point out, net income is 1% of sales. But part of your question is unclear. It's the child being paid $.50 to purchase $.25 of groceries or $25 of groceries. If its $25, then the child has made 2% of the amount of sales. I think you can do the math from there. Homework questions are given for you to do the work to show how much you have learned. We won't do that work for you, so you need to show you have at least attempted to do it.

    As for asking questions here... It depends on the question.

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