SM.66 A small regional retailer is looking for ways to increase profits. Given its impressive record of growth, the sales andmarketing vice president wants to target a 5% increase in sales to meet the profitability goals. The company currently hasrevenues of $33,000,000 (annually), spends 64% of its revenues on purchases, and has a net profit margin of 4.75%.You are a buyer working for this company and you want to show the vice president that it may be easier to reach the profitabilitygoals by lowering purchasing expenses.If the company achieves its revenue growth target of 5%, by how many dollars would revenue increase? (Display your answer asa whole number.)NumberAssuming that revenues stayed flat (meaning the company did not try to increase sales by the 5 percent target), by whatpercentage would they have to decrease purchasing expenses to equal the increased profit that would have come from a 5percent increase to revenues? (Write your answer as a percentage, and display your answer to two decimal places.)Note: This question is to stretch your mind a bit and to show how much more, on a percentage basis, sales must increase inorder to equal the bottom-line benefits of a modest decrease in purchasing expenses. There will not be a question like this on anyassessment.The sales increase targeted percentage is(how many) times bigger than the required percentage decrease in purchasingexpenses. (Display your answer as a whole number.)Number

Revenues is $33,000,000 Purchse spend is 64 percent.

Answered: Assuming that revenues stayed flat…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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UST 40,000 (Commerce 5,000; Medicine 15%; AB 20%; Law 5% and others)Average price per computer device Php25,000Average price per Apple device Php30,000Among them, 40% of students of commerce, 50% of AB, and 80% of Law owns at least one Appledevice.Compare the brand penetration of Apple in the above colleges.What is the penetration share of Apple in the above colleges?Given that students replace their Apple devices once every 3 years on average, what is the marketsize (units/revenues) for computer devices for these colleges until the end of 2025?What is the concentration of sales/revenue of Apple devices among the colleges (BDI)?Compare the CDI and BDI of the colleges.Insights?
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