Question

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.

If the company has a net profit margin of 4 percent, what would its net profit be (in dollars)? (Display your answer as a whole number.)

___38000___Correct Response(15 %)

If in the next year the company achieves its revenue growth target of 8.5 percent, what would its total revenue be? (Display your answer as a whole number.)

___1030750___Correct Response(15 %)

If in the next year the company achieves its revenue growth target of 8.5 percent, and assuming its profit margin remained unchanged at 4 percent, what would its total profit be for next year? (Display your answer as a whole number.)

___41230___Correct Response(15 %)

If the company achieves its revenue growth target of 8.5 percent, by how much will revenue increase? (Display your answer as a whole number.)

___80750___Correct Response(15 %)

If the company achieves its revenue growth target of 8.5 percent, by how many dollars will net profit increase? (Display your answer as a whole number.)

___3230___Correct Response(15 %)

Using the original revenue number of $950,000, if the company spends 65 percent of its revenue on purchases, what would be its purchasing expense? (Display your answer as a whole number.)

___617500___Correct Response(15 %)

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 9 percent increase to revenues? (Write your answer as a percentage and display your answer to two decimal places.)

___13.85___Incorrect Response(/.52/)

Answer 1

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%