Question: SM . 6 3 A small company has $ 9 , 7 5 0 , 0 0 0 in ( annual ) revenue, spends 4

SM.63 A small company has $9,750,000 in (annual) revenue, spends 46% of its revenues on purchases, and has a net profit margin of 9.5%. 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.

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