How many dollars would they have to increase sales in order

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A small company has $6,000,000 in (annual) revenue, spends 47% of its revenues on purchases, and has a net profit margin of 6.25%. 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?

Reference no: EM131648985

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