****NOTE: I only need the answers to questions 5 & 6!!!*****

You are the CSCO for Pirates Industrial Enterprises (PIE). Your CEO just left your office and she is not happy. She thinks all the SCM department does is spend and never creates value for the firm. Furthermore, she holds up the Marketing department as the primary source of revenue. In order to exonerate the SCM department and ultimately, your own name, you have decided to run the numbers on your most recently concluded negotiation (Q4 of 2020) to show once and for all how SCM can create value. In this negotiation, you were able to get your supply base to reduce the COGS by 8%. Using the numbers below in Table 1, answer the questions below. Table 1 Earnings and Expenses for Q4. 2020: Sales Cost of Goods Sold Transportation Profit Pre-negotiation $12,000,000 $9,350,000 $2,200,000 $450,000 NOTE: Round your answers up 1. What is the new COGS after the 8% negotiated reduction? 2. What is the resulting new profit? 3. What is the difference between the old and new profit, both in terms of dollar amount and percentage? 4. How much does the Marketing department need to increase sales in order to match the same increase in profit? NOTE: Round your answers up Your SCM department has been able to negotiate an additional 4% reduction in the COGS and a 3% reduction in Transportation. Using the sales figure from Table 1 and your answers to questions 1-3, answer the following. 5. Using your answers to questions 1- 3 (but not 4) as the base, what is the resulting new increase in profit because of the additional 4% reduction in COGS and the 3% reduction in Transportation? 6. How much does the Marketing department need to increase sales in order to match the new increase in profit