A small company has $4,500,000 in (annual) revenue, spends 57% of its revenues on purchases, and...

  

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A small company has $4,500,000 in (annual) revenue, spends 57% of its revenues on purchases, and has a net profit margin of 11.75%. They would like to increase their profits and they are looking at focusing in one of two directions. First, they think they can save 2.80% 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 2.80% savings to purchasing expenses? (Display your answer as a whole number.) Number A small company has $4,500,000 in (annual) revenue, spends 57% of its revenues on purchases, and has a net profit margin of 11.75%. They would like to increase their profits and they are looking at focusing in one of two directions. First, they think they can save 2.80% 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 2.80% savings to purchasing expenses? (Display your answer as a whole number.) Number

Answer rating: 100% (QA)

4 500 000 x 57 2 555 000 amount spent on purchases 2 555 000 x 0 02 80 71 400 sav ings from 2 ... View the full answer