SM.65 A marketing company prides itself on its sales prowess and is looking for ways to increase profits. Given the company culture, the president calls for a 11% increase in sales to meet the profitability goals. The company currently has revenues of $7,838,000 (annually), spends 50% of its revenues on purchases, and has a net prot margin of 5.5%. You are a modest purchasing intern working for this company and you want to show the president that it may be easier to reach the profitability goals by lowering the purchasing expenses (while holding sales constant, that is, no need to increase sales by 11%). If the company is able to reach its goal of increasing sales by 11%, by how how many dollars would its revenue increase? (Display your answer as a whole number.) Number If the company is able to reach its goal of increasing sales by 11%, by how many dollars would its profit increase? (Display your answer as a whole number.) Number Assuming that revenues stayed flat (meaning the company did not try to increase sales by the 11 percent target), by what percentage would they have to decrease purchasing expenses to equal the increased profit that would have come from a 11 percent increase to revenues? (Write your answer as a percentage, and display your answer to two decimal places.) % P062 Trek is a manufacturing company that produces high-end bicycles. Their prime road bike, the MadOne, can be fully customized through a program called Project One. Last year they rolled out 1,090 bikes which sold on average for $8,100 and used the following inputs as found in the table below: mm 1: Labor Hours 18,100 $20.75 OCLV Carbon (square feet) I 1,850 $13.14 Rubber (pounds) 2,775 $3.76 Paint (gallons) 450- $23.79 Energy (kWh) 11,246,910 $0.11 What was last year's single-factor productivity for Trek in terms of rubber (not dollars)? (Display your answer to four decimal places.) Number What was last year's single-factor productivity for Trek in terms of OCLV Carbon (input and output units, not dollars)? (Display your answer to four decimal places.) Number What was last year's multi-factor productivity for Trek in terms of dollars? (In other words, how many dollars of revenue were generated for each dollar of input? Display your answer to tw_o decimal places.) Number Suppose in the coming year they expect their multi-factor productivity to increase by 6% over last year (what you just computed). What should be their multi- factor productivity in the coming year? (Display your answer to two decimal places.) Number PC.52 At the start of the semester Custom Kicks personnel were struggling to quickly customize their shoe inserts to their customers' feet. This hurt sales as customers became frustrated during the customization process and would hesitate to refer friends. During week three of running the business, it took an average employee about 25 minutes to customize one pair of inserts. Recognizing this challenge, management and key employees analyzed the customization process and made some time-saving changes. Two weeks later, after training all employees on the new process, an average employee could customize a pair of inserts in about 18 minutes. In this case, what is the output that should be used for productivity calculations? 0 25 minutes 0 18 minutes 0 1 pair (of customized inserts) After making the time-saving changes mentioned above, how many pair of inserts could an average employee complete in one hour? (Display your answer to two decimal places.) Number After making the timesaving changes mentioned above, by what percentage did Custom Kicks' productivity increase? (Write your answer as a percentage, and display your answer to two decimal places.) %