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Example Calculations Whole Foods Annual Financials (Millions) Sales Revenue: $15,390 M COGS: $9,530 M 61.923% Pretax Earnings $878 M 5.705% Purchasing/Procurement reduces COGS by

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Example Calculations Whole Foods Annual Financials (Millions) Sales Revenue: $15,390 M COGS: $9,530 M 61.923% Pretax Earnings $878 M 5.705% Purchasing/Procurement reduces COGS by 1% How much will COGS decrease? How much will Pretax Earnings Increase? By what percent would Sales/Marketing need to increase Sales to have the same effect? 7-17

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