By what percentage would they have to increase sales in


A small company has $5,000,000 in (annual) revenue, spends 48% of its revenues on purchases, and has a net profit margin of 8.75%. They would like to increase their profits and they are looking at focusing in one of two directions. First, they think they can save 1.00% on their purchase expenses. Or second, they can focus on increasing sales. By what percentage would they have to increase sales in order to equal a 1.00% savings to purchasing expenses? (Write your answer as a percentage and display your answer to two decimal places.)

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Operation Management: By what percentage would they have to increase sales in
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