Using Table 11.4

LOADING...

, determine the sales necessary to equal a dollar of savings on purchases for a company that has:

a) A net profit of

6%

and spends

60%

of its revenue on purchases.

In this situation, $1 savings in supply chain is equivalent to increasing the sales by

$nothing

to realize the same profit (enter your response to two decimal places).

b) A net profit of

8%

and spends

80%

of its revenue on purchases.

In this situation, $1 savings in supply chain is equivalent to increasing the sales by

$nothing

to realize the same profit (enter your response to two decimal places).