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By how many dollars would they have to increase sales in order to equal a 1.80% savings to purchasing expenses? (Display your answer as a whole number.)

By how many dollars would they have to increase sales in order to equal a 1.80% savings to purchasing expenses? (Display your answer as a whole number.)

Practical Management Science
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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SM.63 A small company has $8,500,000 in (annual) revenue, spends 41% 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 1.80% 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 1.80% savings to purchasing expenses? (Display your answer as a whole number.) Number
Transcribed Image Text:SM.63 A small company has $8,500,000 in (annual) revenue, spends 41% 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 1.80% 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 1.80% savings to purchasing expenses? (Display your answer as a whole number.) Number
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