SM.65 A marketing company prides itself on its sales prowess andis looking for ways to increase profits. Given the company culture,the president calls for a 13% increase in sales to meet theprofitability goals. The company currently has revenues of$9,612,000 (annually), spends 55% of its revenues on purchases, andhas a net profit margin of 7.25%. You are a modest purchasingintern working for this company and you want to show the presidentthat it may be easier to reach the profitability goals by loweringthe purchasing expenses (while holding sales constant, that is, noneed to increase sales by 13%). If the company is able to reach itsgoal of increasing sales by 13%, by how how many dollars would itsrevenue increase? (Display your answer as a whole number.) 124956If the company is able to reach its goal of increasing sales by13%, by how many dollars would its profit increase? (Display youranswer as a whole number.) Number Assuming that revenues stayedflat (meaning the company did not try to increase sales by the 13percent target), by what percentage would they have to decreasepurchasing expenses to equal the increased profit that would havecome from a 13 percent increase to revenues? (Write your answer asa percentage, and display your answer to two decimal places.
