How many dollars will net profit increase

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Reference no: EM132187155

A small but growing online retailer, Nile Corporation, has shown impressive growth in sales over the past several years, with sales this past year at $950,000.

a. If in the next year the company achieves its revenue growth target of 8.5 percent, what would its total revenue be?

b. If the company achieves its revenue growth target of 8.5 percent, by how many dollars will net profit increase?

c. Assume that revenues stayed flat (meaning the company did not try to increase sales by the 9 percent target), by what percentage would they have to decrease purchasing expenses to equal the increased profit that would have come from a 8.5 percent increase to revenues? (Write your answer as a percentage and display your answer to two decimal places.)

Reference no: EM132187155

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