SM.66 A small regional retailer is looking for ways to increase profits. Given its impressive record of growth, the sales andmarketing vice president wants to target a 5% increase in sales to meet the profitability goals. The company currently hasrevenues of $33,000,000 (annually), spends 64% of its revenues on purchases, and has a net profit margin of 4.75%.You are a buyer working for this company and you want to show the vice president that it may be easier to reach the profitabilitygoals by lowering purchasing expenses.If the company achieves its revenue growth target of 5%, by how many dollars would revenue increase? (Display your answer asa whole number.)NumberAssuming that revenues stayed flat (meaning the company did not try to increase sales by the 5 percent target), by whatpercentage would they have to decrease purchasing expenses to equal the increased profit that would have come from a 5percent increase to revenues? (Write your answer as a percentage, and display your answer to two decimal places.)Note: This question is to stretch your mind a bit and to show how much more, on a percentage basis, sales must increase inorder to equal the bottom-line benefits of a modest decrease in purchasing expenses. There will not be a question like this on anyassessment.The sales increase targeted percentage is(how many) times bigger than the required percentage decrease in purchasingexpenses. (Display your answer as a whole number.)Number

Revenues is $33,000,000 Purchse spend is 64 percent.

Answered: Assuming that revenues stayed flat…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The alternatives shown are to be compared on the basis of their present worth values. At an interest rate of 8% per year, the values of n that you should use in the uniform series factors to make a correct comparison by the present worth method are: Alternative(A) Alternative (B) -25,000 -10,000 10,000 First Cost M&O cost/year 3,000 Salvage value 6,000 -2,000 Life 4 O A n 4 years for A and n =4 years for B OB. None of the above O C. n = 4 years for A and n =3 years for B O D. n = 12 years for A and n = 12 years for B
The company’s marketing manager estimates that there is a 60% chance that demand will rise faster than the current rate, a 30% chance that it will continue to rise at the current rate and a 10% chance that it will increase at a slower rate or fall. Assuming that the company’s objective is to maximize expected net present value, determine (a)The course of action which it should take (b)The expected value of perfect information.
Which of the following statements is correct regarding the EMH form? Select one: None of the answers are correct If the market is weak-form efficient, then it is also semistrong and strong-form efficient. If the market is semistrong form efficient, then it is also strong form efficient If a market is strong-form efficient, it is also semistrong and weak form efficient If the market is strong-form efficient, it is also semistrong but not weak-form efficient
Which of the following statement is true? O For any type of derivatives, the payoffs will never be negative For any type of derivatives, the profit will never be negative There is no derivative that offers non-negative payoffs There is no derivative that offers non-negative profit All of the statements above are wrong
If all the individual land parcels in a new housing development are sold for $300,000 each, the developer projects total revenue from land sales will be $120 million. If the land lender requires that their $60 million land loan be completely paid off by the time that 75% of the individual land parcels have been sold, what would be the lender’s minimum release price for each parcel? a. $150,000 b. $200,000 c. $250,000 d.$300,000
Benefits and Costs of Buying vs. Renting Reem & Kareem are trying to decide whether to rent or purchase housing. Reem favors buying and Kareem leans toward renting, and both seem able to justify their particular choice. Reem thinks that the tax advantages are a very good reason for buying. Kareem, however, believes that cash flow is so much better when renting. See whether you can help them make their decision. Does the home buyer enjoy tax advantages? Explain. Discuss Kareem’s belief that cash flow is better with renting. Suggest some reasons why Reem might consider renting rather than purchasing housing. Suggest some reasons why Kareem might consider buying rather than renting housing. Is there a clear-cut basis for deciding whether to rent or buy housing? Explain why or why not.
Imagine that you run a business that manufactures a unique medical product. The potential demand for the product is very short lived and uncertain. Your production cycle is very long, which means you need to have the products ready in advance. If the demand for your product arises (only 30% chance), they will be sold well; if not, the products will remain unsold and you will need to liquidate them for $500 each. You predict that the demand will be normally distributed with mean= 15000 and standard deviation= 7000. The production cost of your product is, on average, $5500. You will sell your product for $12500. Suppose you make 18000 products, and you get lucky and demand will occur this year. What is your expected profit?
You are managing a firm with market power, and you think the price elasticity of demand for your product is between 1.3 and 1.5. You estimate that your marginal cost is between $50 and $75. The price that you should set would range between $ and $ (Round your answers to two decimal places.) If you refine your estimate of the marginal cost to $80, the price you should set would now range between $ and S. (Round your answers to two decimal places.)
In the prospectus for the Brazos Aggressive Growth fund, the fee table indicates that the fund has a 12b-1 fee of 0.35 percent and an expense ratio of 1.55 percent that is collected once a year on December 1. Joan and Don Norwood have shares valued at $114,500 on December 1. What is the amount of the 12b-1 fee this year? What is the amount they will pay for expenses this year?
Eight years ago, Burt Brownlee purchased a government bond that pays 3.60 percent interest. The face value of the bond was $1,000. What is the dollar amount of annual interest that Burt received from his bond investment each year? Assuming that comparable bonds are now paying 2.40 percent, will Burt's bond increase or decrease in value? Why did the bond increase or decrease in value?
1v
If money can be invested at 5% compounded annually, A.Accumulate $1,000 for 15 years. B. Discount the result of problem A for 10 years. C. Accumulate 1,000 for 5 years. Compare the results of B and C.

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