By what percentage they have to decrease purchasing expenses

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Problem

A small regional retailer is looking for ways to increase profits. Given its impressive record of growth, the sales and marketing vice president wants to target a 8% increase in sales to meet the profitability goals. The company currently has revenues of $34,000,000 (annually), spends 62% of its revenues on purchases, and has a net profit margin of 1.75%. You are a buyer working for this company and you want to show the vice president that it may be easier to reach the profitability goals by lowering purchasing expenses. Get the instant assignment help. If the company achieves its revenue growth target of 8%, by how many dollars would revenue increase? (Display your answer as a whole number.) 2720000 Assuming that revenues stayed flat (meaning the company did not try to increase sales by the 8 percent target), by what percentage would they have to decrease purchasing expenses to equal the increased profit that would have come from a 8 percent increase to revenues?

Reference no: EM133922234

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