How many dollars would they have to increase sales in order

Assignment Help Operation Management

Reference no: EM131780856

A. Suppose a company has $10,000,000 million in (annual) revenue and spends 45% of its revenues on purchases. By how much can this company increase its bottom line (profits) if it can decrease purchasing costs by 0.75%? (Display your answer as a whole number.)

B. A small company has $4,000,000 in (annual) revenue, spends 45% of its revenues on purchases, and has a net profit margin of 5.25%. They would like to increase their profits and they are looking at focusing in one of two directions. First, they think they can save 1.00% 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 1.00% savings to purchasing expenses? (Display your answer as a whole number.)

Reference no: EM131780856

Questions Cloud

What is the theme in these two stories : Compare Kafka's Metamorphosis and Marquez's a very old man with enormous wings. What is the theme in these two stories?

Efficiency and effectiveness of supply chain management : In what ways does business process integration contribute to the efficiency and effectiveness of supply chain management?

Why does international marketing require small business : Why does international marketing require a small business owner to have a heightened level of conscientiousness and flexibility?

How would you tackle blank slate that is city marketing : You were just hired at Uber as the Marketing Manager for a major city. How would you tackle the ‘blank slate’ that is city marketing?

How many dollars would they have to increase sales in order : By how many dollars would they have to increase sales in order to equal a 1.00% savings to purchasing expenses? (Display your answer as a whole number.)

Which social media do you frequently use : Which social media do you frequently use? If not using why? How did these social media affect your consumer purchase decision making?

What was the reason that prompted the interaction : Have you had the chance to interact with a company on any of the Social Network platforms? What was the reason that prompted the interaction?

Ethical dilemmas in production and inventory control : What are the ethical dilemmas in production and inventory control? What can a company due to avoid these dilemmas?

Basis of their suitability for promotion to particular job : AN executive must rank three subordinates on the basis of their suitability for promotion to a particular job.

User Account

All Pages