Question
A small company has $4,500,000 in (annual) revenue, spends 57% of its revenues on purchases, and has a net profit margin of 11.75%. They
A small company has $4,500,000 in (annual) revenue, spends 57% of its revenues on purchases, and has a net profit margin of 11.75%. They would like to increase their profits and they are looking at focusing in one of two directions. First, they think they can save 2.80% on their purchase expenses. Or second, they can focus on increasing sales. By how many dollars would they have to increase sales in order to equal a 2.80% savings to purchasing expenses? (Display your answer as a whole number.) Number
Step by Step Solution
3.33 Rating (153 Votes )
There are 3 Steps involved in it
Step: 1
4 500 000 x 57 2 555 000 amount spent on purchases 2 555 000 x 0 02 80 71 400 sav ings from 2 ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Managerial Accounting An Integrative Approach
Authors: C J Mcnair Connoly, Kenneth Merchant
2nd Edition
099950049X, 978-0999500491
Students also viewed these Marketing questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App