13. A company has sales of $150 million, cost of goods sold of $100 million, and a before-tax profit of 8%. If purchasing was able to reduce the cost of goods sold by $5 million, how much additional sales would be required to achieve the same impact on profit? A. $5 million. B. $10 million. C. $55 million. D. $62.5 million.

13. A company has sales of $150 million, cost of goods sold of $100 million, and a before-tax profit of 8%. If purchasing was able to reduce the cost of goods sold by $5 million, how much additional sales would be required to achieve the same impact on profit? A. $5 million. B. $10 million. C. $55 million. D. $62.5 million.

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...

See similar textbooks

Similar questions

Income taxes have the effect of Select one : a decreasing the cost of capital for the firm. B. None of these c. decreasing the cost of debt. D. increasing the cost of debt
$ To the Internal Revenue Service (IRS), the reasonableness of total itemized deductions depends on the taxpayer's adjusted gross income. Large deductions, which include charity and medical deductions, are more reasonable for taxpayers with large adjusted gross incomes. If a taxpayer claims larger than average itemized deductions for a given level of income, the chances of an IRS audit are increased. Data (in thousands of dollars) on adjusted gross income and the average or reasonable amount of itemized deductions follow. Adjusted Gross Income Itemized Deductions ($1,000s) 22 ($1,000s) 9.6 27 9.6 32 10.1 48 11.1 65 11.5 85 19.7 120 25.5 (a) Develop a scatter diagram for these data with adjusted gross income as the independent variable. 30- 25 20 15 Itemized Deductions ($1,000s) 10 5- 0 20 40 60 80 100 120 140 Adjusted Gross Income ($1,000s) thousand Itemized Deductions ($1,000s) 30 25 20 15 10 · . 5 0 20 40 60 80 100 120 140 Adjusted Gross Income ($1,000s) Itemized Deductions ($1,000s)…
T a. $123,000, 15-year loan at 6.00 percent. b. $165,000, 30-year loan at 7.50 percent. c. $68,000, 20-year loan at 7.50 percent. d-1. Longer mortgage terms mean a monthly payment. d-2. For increase in mortgage rate
Q1 A video rental shop could buy a copy of a film and rent it to the public, and the copyright owner would receive no further royalties, even though the video shop was making a profit from the commercial exploitation of the work This was felt to be unfair. In which category this examples belongs to, also explain how? Q2 A database is a collection of information that is organized so that it can be easily accessed, managed and updated. Computer databases typically contain aggregations of data records or files, containing information about sales transactions or interactions with specific customers. How we protect a database, as it is not a tangible thing. Q3 Di fference between Valid and void contracts BExplain with at least two examples each.
Money taken out of a sole proprietorship by an owner is: Choose the correct answer 1. subject to income tax, Employment Insurance and Canada Pension Plan 2. deductions when taken out. 3. considered an expense 4. taken as a draw against anticipated profits 5. all of the above
Decision regarding the risk that is taken in the senior management orders when closing positions in investment portfolios to guarantee profitability for its clients, after an announcement from the FED that indicates that the possibility of losses in stock titles in the capital market has increased . Select one: a.Mitigation. b.Acceptance. c.Transfer. d.Control.
a.Use the appropriate formula to find the value of the annuity. b.Find the interest. Periodic Deposit Rate Time $6000 at the end of each year 5.5% compounded annually 20 years Click the icon to view some finance formulas. a.The value of the annuity is $_______. (Do not round until the final answer. Then round to the nearest dollar as needed.) b.The interest is $________. (Use the answer from part (a) to find this answer. Round to the nearest dollar as needed.)
What can accurately be said about projecting operating expenses (OPEX)? Select an answer: there are fewer surprises in OPEX than in other P&L elements you have less control over OPEX than other P&L elements OPEX are more difficult to project than gross margin projections OPEX are more difficult to project than revenue expenses
Risk retention involves... /-చ్ ఆరి Select one: a. assuming the cost of an uninsurable risk b. the possibility of loss or gain C. self-insuring in the event of incurring uninsurable risk d. stopping the activity that involves risk of loss e. buying insurance
Under Proposition 13, how much can the appraised value of a parcel of property, for tax purposes, be increased annually? Group of answer choices Two percent. No more than the rate of inflation. Proposition 13 does not regulate reappraisal of real property. One percent.
Gross profit is than estimates of true profits because no include taxes. (a) Equal (b) Less (c) More (d) Not equal
3- Every investor expects some return on his/her investment. The benefit/return received by common stockholder on their investment in a company is called _____________. a. None of the options b. Dividend c. Coupon d. Preference dividend