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Using Table 11.4, determine the sales necessary to equal a dollar of savings on purchases for a company that has a) A net profit of 6% and spends 50% of its revenue on purchases. In this situation $1 savings in supply chain is equivalent to increasing the sales by $ 357 to realize the same profit (enter your response to two decimal places) b) A net profit of 4% and spends 60% of its revenue on purchases In this situation S1 savings in supply chain is equivalent to increasing the sales by $(to realize the same profit (enter your response to two decimal places). Table 11.4: Dollars of Additional Sales Needed to Equal $1 Saved through the Supply Chain Percent Net Profit of Firm bal 90% 2% 4% 6% 8% 10% 30% $2.78 $2.70 $2.63 $2.56 $2.50 Percent of Sales Spent in the Supply Chain 40% 50% 60% 70% 80% $323 $3 85 $4.76 $6.25 S9 09 $3.13 $3 70 $455 $5 88 $8.33 $3.03 $357 $4.35 $5.56 $7 69 $2.94 $3.45 $4 17 $5.26 $7.14 $286 $3.33 $400 $5.00 $6.67 plac $16.67 $14 29 $12.50 $11 11 $10 00 'The required increase in sales assumes that 50% of the costs other than purchases are variable and that half of the remaining costs (less profit) are fixed Therefore, at sales of $100 (50% purchases and 2% margin), $50 are purchases $24 are other variable costs $24 are fixed costs, and $2 profit Increasing sales by $3.85 yields the following Purchases at 50% $ 51 93 Other Variable Costs 24 92 Fixed Cost 24 00 Profit 3.00 $103 85 Through $3 85 of additional sales, we have increased profit by $1, from $2 to $3 The same increase in margin could have been obtained by reducing supply chain costs by $1