Question

amazon is one of the top retail companies in the united states, to save the money on the order delivery, the company has started the own delivery network so that they can save 13% by delivering its own packages. the company has spent 8 billion dollars a year in last mile delivery. if the company return on sales is 23%, then what is the equivalent yearly increase in sales earned by developing its own delivery network. (round to the nearest unit).

Answer 1

To determine the yearly increase in sales earned by developing its own delivery network, divide the money saved on delivery by the company's return on sales. The equivalent yearly increase in sales is $4.52 billion.

Step-by-step explanation:

To determine the equivalent yearly increase in sales earned by developing its own delivery network, we need to calculate the amount of money saved by delivering its own packages, and then divide it by the company's return on sales.

The company has spent $8 billion a year on last mile delivery. By delivering its own packages, it saves 13% on these costs, which is equivalent to $8 billion x 0.13 = $1.04 billion.

To calculate the increase in sales that is equivalent to this amount, we divide the savings by the company's return on sales. The return on sales is 23%, which can be expressed as 0.23. Therefore, the equivalent yearly increase in sales earned by developing its own delivery network is $1.04 billion / 0.23 = $4.52 billion.