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Given the information in the table below and assuming the company's cost & profit structure remains the same, what should a company's revenues be (in

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Given the information in the table below and assuming the company's cost & profit structure remains the same, what should a company's revenues be (in USD) in order to match the benefit in profits obtained by a 6% reduction in purchases? (5 pts) (tip: first calculate the new profit level reducing 6% of purchases, then find out the new revenue level with the original profit margin) Element Impact Reducing Purchases Impact Increasing Revenue Organization's Revenue $ 3,500,000 USD ? Purchases $2,800,000 USD Profit (before tax) $ 175,000 USD Pet Reduction in Purchases / Pct increase in Revenue 6% New Profit Level (5) Pct. Increase in Profits $3,750,000 USD $6,860,000 USD $ 7,700,000 USD None of the Above

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