Calculating SG&A margin in the Colgate case study
Q: As I was adjusting the calculation for SG&A in cell G38 I got a different margin to subtract (0.0028) and I should get 0.0044 according to the solution spreadsheet. Could I please see the detailed calculation of 0.0044 margin.
A: Here is the calculation:
- Pre-Tax Minority Interest 57.5
- Pre-Tax Equity in Affiliates (3.4)
- Net Impact on Expense $54.1
- Expense as a % of sales $54.1/12,237.7 = 0.0044 or 0.44%
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