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Hello accounting experts its sort of accounting question but it's for me supply chain class. I always ask supply chain tutors but I've never got
Hello accounting experts
its sort of accounting question but it's for me supply chain class. I always ask supply chain tutors but I've never got any answer. Please assist me with this question as much as you can.Thanks
Let's Do an Example!! Hill's Orchards sells 1,000 pies per week for $ 5 each. Their COGS (Cost of Goods Sold) is 60 % of sales. Operating expenses are $ 1.50 per pie. Through good purchasing practices, you can reduce costs by $.50 per pie. A) What is the present profit margin? B) With better purchasing? Earnings and Expenses Sales -COGS -Operating Expenses =Pretax Earnings Profit Margin = 100% (profit/sales) Profit Margin = 100% (profit/sales) C) How much would sales have to increase by to have the same impact? Profit leverage = Total sales increase =Step by Step Solution
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