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Requirements Requirements (a) Suppose Barnes could reduce its sales discounts to produce a 9% increase in net revenues but no changes in variable or fixed costs. By what percent would operating profits increase? How does this percentage compare to the percentage increase in net sales revenue? (b) Refer to the original information in this problem. Suppose Barnes' salespeople increase sales discounts to produce a 5% decrease in net revenues, with no change in variable or fixed costs. By what percent would operating profits decrease? How does this percentage compare to the percentage decrease in net sales revenue? (c) Consider the ratio of operating profit to sales. How does this ratio relate to the percentage change in operating profit, for a given percentage change in the net sales revenue? Requirement (a) Suppose Barnes could reduce its sales discounts to produce a 9% increase in net revenues but no changes in variable or fixed costs. By what percent would operating profits increase How does this percentage compare to the percentage increase in net sales revenue? Begin by calculating the operating profit with a 9% increase in net revenues but no changes in variable or fixed costs. By what percent would operating profits increase? How does this percentage compare to the percentage increase in net sales revenue? A 9% increase in net revenues would result in a(n)% increase in operating profit. The percentage increase in operating profits is than the percentage increase in net sales revenues. Requirement (b) Refer to the original information in this problem. Suppose Barnes' salespeople increase sales discounts to produce a 5% decrease in net revenues, with no change in variable or fixed costs. By what percent would operating profits decrease? How does this percentage compare to the percentage decrease in net sales revenue? Begin by calculating Bames' operating profit if its salespeople increase sales discounts to produce a 5% decrease in net revenues, with no change in variable or fixed costs. By what percent would operating profits decrease? How does this percentage compare to the percentage decrease in net sales revenue? Barnes's operating profits would decrease by %. The percentage decrease in operating profits is than the percentage decrease in net sales revenue. Requirement (c) Consider the ratio of operating profit to sales. How does this ratio relate to the percentage change in operating profit, for a given percentage change in the net sales revenue? The higher the ratio of operating profit to sales, the the change in operating profit percentage for a given percentage change in the net sales revenue. Requirements Requirements (a) Suppose Barnes could reduce its sales discounts to produce a 9% increase in net revenues but no changes in variable or fixed costs. By what percent would operating profits increase? How does this percentage compare to the percentage increase in net sales revenue? (b) Refer to the original information in this problem. Suppose Barnes' salespeople increase sales discounts to produce a 5% decrease in net revenues, with no change in variable or fixed costs. By what percent would operating profits decrease? How does this percentage compare to the percentage decrease in net sales revenue? (c) Consider the ratio of operating profit to sales. How does this ratio relate to the percentage change in operating profit, for a given percentage change in the net sales revenue? Requirement (a) Suppose Barnes could reduce its sales discounts to produce a 9% increase in net revenues but no changes in variable or fixed costs. By what percent would operating profits increase How does this percentage compare to the percentage increase in net sales revenue? Begin by calculating the operating profit with a 9% increase in net revenues but no changes in variable or fixed costs. By what percent would operating profits increase? How does this percentage compare to the percentage increase in net sales revenue? A 9% increase in net revenues would result in a(n)% increase in operating profit. The percentage increase in operating profits is than the percentage increase in net sales revenues. Requirement (b) Refer to the original information in this problem. Suppose Barnes' salespeople increase sales discounts to produce a 5% decrease in net revenues, with no change in variable or fixed costs. By what percent would operating profits decrease? How does this percentage compare to the percentage decrease in net sales revenue? Begin by calculating Bames' operating profit if its salespeople increase sales discounts to produce a 5% decrease in net revenues, with no change in variable or fixed costs. By what percent would operating profits decrease? How does this percentage compare to the percentage decrease in net sales revenue? Barnes's operating profits would decrease by %. The percentage decrease in operating profits is than the percentage decrease in net sales revenue. Requirement (c) Consider the ratio of operating profit to sales. How does this ratio relate to the percentage change in operating profit, for a given percentage change in the net sales revenue? The higher the ratio of operating profit to sales, the the change in operating profit percentage for a given percentage change in the net sales revenue