Question
Your colleagues in the sales department claim they can easily improve the bottom line through sales above and beyond what you did with the 4%
Your colleagues in the sales department claim they can easily improve the bottom line through sales above and beyond what you did with the 4% reduction in COGS calculation in the previous problem. What your friends in the sales department dont realize is that they will have to work hard to match your impact on the bottom line. Using your answer from the previous problem and information in Table 2, determine how hard will they have to work.
TABLE 2:
Earnings and Expenses | Current |
Sales | $50,000 |
Cost of Goods Sold | $27,700 |
Pretax Earnings | $3,700 |
Group of answer choices
They will need to increase sales by about $15,000
They will need to increase sales by about $11,000
They will need to increase sales by about $8,500
They will need to increase sales by about $1,000
They should just give up
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