attached table 11.4

Using mel determine the sales necessary to equal a dollar of savings on purchases for a company that has a) A net profit of 4% and spends 40% of its revenue on purchases In this situation St savings in supply chain is equivalent to increasing the sales by sto realize the same pront (enter your response to two decimal de b) A net profit of 6% and spends 80% of its revenue on purchases In this situation S1 savings in supply chain is equivalent to increasing the sales by to realue the same pronter your raponse de Motocunal places completely Using Table 4.0 Table 11.4 a) A net profit of 4% In this situation Table 11.4: Dollars of Additional Sales Needed to Equal 51 Saved through the Supply Chain b) A net profit of 69 In this situation Percent Net Profit of Firm Percent of Sales Spent in the Supply Chain 30% 40% 50% 60% 70% 80% 29 $2.78 $323 $3.85 $4.70 58 25 4% $2.70 $313 53.70 $455 $14 $263 $303 $3.57 $434 5538 11250 8% 52.56 $24 5345 54.17 5520 374 10% $2.50 $236 $333 $400 5500 "The required increase in sales assumes that 50% of the costs other than purchases are variable and that the remaining costs (less profit) are fixed Therefore a sales of $100 (50% purchases and 25. margin) 550 am purchases, 524 are other variable costs $24 are fixed costs and 52 profit increasing sales by 5 yes the following Purchases at 50% $ 599 Other Variable Cosis 2492 Fixed Cost 24.00 Profit 3.00 510385 Through $385 of additional sales we have crossed profit by 51 from $210 53 Thorne in mare could have been obtained by reducing supply chain costs by S1 Pro Done