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.Answer the Tollowing questions: (5 points) a. Compute the profit leverage effect for an organization with revenue of $100 million, purchases of $60 million, and
.Answer the Tollowing questions: (5 points) a. Compute the profit leverage effect "for an organization with revenue of $100 million, purchases of $60 million, and profit of $8 million before tax, a 10 percent reduction in purchase spend would result in: i. How much increase/decrease in profit, please mention the dollar value as well as percentage? i. Assuming the same percentage hold, how much should the value of revenue/sale increase if the profit increase of $5 million were to be possible just via sales? Which of the two would you prefer, decrease of supply cost or increase of sales, explain. ili
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