Problems

$8\mathrm{.}1.$ If purchases were $45\%$ of sales and other

expenses were $45\%$ of sales, what would be the

increase in profit if$,$ through better purchasing, the cost

of purchases was reduced to $43\%$ of sales?

$8\mathrm{.}2.$ If suppliers were to be rated on the following basis,

what would be the ranking of the two suppliers listed?

$8\mathrm{.}3.$ A company is negotiating with a potential supplier

for the purchase of $100,000$ widgets. The company

estimates that the supplier's variable costs are $$5$ per

unit and that the fixed costs, depreciation, overhead,

and so on$,$ are $$50,000.$ The supplier quotes a price of

$$10$ per unit. Calculate the estimated average cost per

unit. Do you think $$10$ is too much to pay? Could the

purchasing department negotiate a better price? How?

Completing in excel is a plus