Medifast, Inc., is a producer and marketer of weight­loss meals and other health and weight­loss
products. Following are selected financial data for the company for the period 2006–2010.

a. Calculate Medifast’s annual sustainable growth rate for the years2006–2010.
b. Comparing the company’s sustainable growth rate with its actual growth rate in sales, what growth
management problems did Medifast face over this period?
c. How did the company cope with these problems?


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