Answered step by step
Verified Expert Solution
Question
1 Approved Answer
SM.63 A small company has $7,500,000 in (annual) revenue, spends 39% of its revenues on purchases, and has a net profit margin of 12.5%. They
SM.63 A small company has $7,500,000 in (annual) revenue, spends 39% of its revenues on purchases, and has a net profit margin of 12.5%. They would like to increase their profits and they are looking at focusing in one of two directions. First, they think they can save 1.65% on their purchase expenses. Or second, they can focus on increasing sales. By how many dollars would they have to increase sales in order to equal a 1.65% savings to purchasing expenses? (Display your answer as a whole number.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started