Answer:
Check the following calculations
Step-by-step explanation:
With an increase of 9% the sales would have been = 950,000*1.09 = 1,035,500
Net profit would have been = 0.04 *1035500 = $41,420
Without increase , the profit would be 38,000
So the decrease in purchasing expenses should be 41420 -38000 = 3,420
Orginal Purchase cost = 617,500
So % decrease = 3420/617500 = 0.005538 =0.5538 = 0.55%