Looking at focusing in one of two directions

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A small company has $4 million in (annual) revenue, spends 48% of its revenues on purchases, and has a net profit margin of 2.75%. They would like to increase their profits and they are looking at focusing in one of two directions. First, they think they can save 1.75% 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 1.75% savings to purchasing expenses?

Round your answer to the nearest whole number.)

Reference no: EM131149964

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