GFE is a manufacturer of widgets. They sell their widgets directly to multiple retailers who sell them to end-users (people like you and me).

For GFE to provide an additional 3% off promotion to the retailers (making the trade promotion 13% instead of 10%). GFE believes they will receive better shelf space allocations from the retailers as a result of this increase in the trade promotion.

What percent increase in GFE's manufacturer's gross sales revenue would GFE need in order to have the same Net Profit before taxes ($720,000) as they have now?

DATA

Use the following data to answer the questions about Manufacturing Firm GFE:

Retailers' Sales Revenue from GFE's widgets	$3,000,000
Manufacturer (GFE's) Gross Sales Revenue	$1,800,000
Trade Promotion (10% off)	$180,000
GFE's Net Sales Revenue	$1,620,000
GFE's Cost of Goods Sold (all Variable)	$540,000
GFE's Advertising Expenditure	$50,000
GFE's Sales & Marketing Administration Expenditure	$150,000
GFE's Consumer Promotion Expenditure	$70,000
GFE's Corporate Executive Salary	$70,000
GFE's Research & Development costs	$20,000
GFE's Net Profit before taxes	$720,000
Total Widget Industry Sales at retail	$30,000,000
Manufacturer's (GFE's) Suggested Retail Price/unit	$10.00
GFE's List Price to Retailer	$6.00
Number of Widgets Sold by GFE to retailers	300,000
GFE's ($) Market share	10%