PTS is interested in exploring the impact effective supply chain management would have. Suppose that for every $1 of sales, 5% is profit, 45% is spent in the supply chain, and the remaining 50% is evenly divided between fixed and production costs. If the chain can save $1 in the supply chain it would take how many dollars of increased sales to have the same increase in profit? Assume that fixed costs are fixed so that the portion of increased sales allocated to fixed costs is instead profit (30% profit margin combined now). Assume sales of $100. O $1.857 O $0.406 O $0.358 O $3.333 O $0.255
PTS is interested in exploring the impact effective supply chain management would have. Suppose that for every $1 of sales, 5% is profit, 45% is spent in the supply chain, and the remaining 50% is evenly divided between fixed and production costs. If the chain can save $1 in the supply chain it would take how many dollars of increased sales to have the same increase in profit? Assume that fixed costs are fixed so that the portion of increased sales allocated to fixed costs is instead profit (30% profit margin combined now). Assume sales of $100. O $1.857 O $0.406 O $0.358 O $3.333 O $0.255
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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![PTS is interested in exploring the impact effective supply chain management would have. Suppose that for every $1 of sales, 5% is profit, 45% is spent in the supply chain,
and the remaining 50% is evenly divided between fixed and production costs. If the chain can save $1 in the supply chain it would take how many dollars of increased sales
to have the same increase in profit? Assume that fixed costs are fixed so that the portion of increased sales allocated to fixed costs is instead profit (30% profit margin
combined now). Assume sales of $100.
$1.857
$0.406
$0.358
$3.333
$0.255](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f3947ed-902f-4447-9310-9bcb540c50ae%2F57743c5a-c4e8-43e2-8c86-e993ad8dbc2a%2F33odih_processed.png&w=3840&q=75)
Transcribed Image Text:PTS is interested in exploring the impact effective supply chain management would have. Suppose that for every $1 of sales, 5% is profit, 45% is spent in the supply chain,
and the remaining 50% is evenly divided between fixed and production costs. If the chain can save $1 in the supply chain it would take how many dollars of increased sales
to have the same increase in profit? Assume that fixed costs are fixed so that the portion of increased sales allocated to fixed costs is instead profit (30% profit margin
combined now). Assume sales of $100.
$1.857
$0.406
$0.358
$3.333
$0.255
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