A small company has $9,750,000 in (annual) revenue, spends 60% of its revenues on purchases, and...

 

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A small company has $9,750,000 in (annual) revenue, spends 60% of its revenues on purchases, and has a net profit margin of 8%. They would like to increase their profits and they are looking at focusing in one of two directions. First, they think they can save 1.50% 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 1.50% savings to purchasing expenses? (Display your answer as a whole number.) Number A small company has $9,750,000 in (annual) revenue, spends 60% of its revenues on purchases, and has a net profit margin of 8%. They would like to increase their profits and they are looking at focusing in one of two directions. First, they think they can save 1.50% 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 1.50% savings to purchasing expenses? (Display your answer as a whole number.) Number

Answer rating: 100% (QA)

Let S be the dollar value they need to increase sales ... View the full answer