SM.63 A small company has $8,500,000 in (annual) revenue, spends 41% of its revenues on purchases, and has a net profitmargin of 12.5%. They would like to increase their profits and they are looking at focusing in one of two directions. First, theythink 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 youranswer as a whole number.)Number

Annual revenue is $8,500,000. Purchase spend is 41 percent of revenue.

Answered: By how many dollars would they have to…

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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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.)