Ask Question
2 February, 02:51

The salesforce sold $30M in additional products; purchasing negotiated $10M in material costs savings.

If operating profit is 12%, how did their impacts on operating profit compare?

+3
Answers (1)
  1. 2 February, 02:56
    0
    The purchasing department increased operating profits by almost three times the amount that the additional sales generated.

    Explanation:

    The sale of $30 million in additional products generated $3.6 million in additional operating profits ( = $10 million x 12%).

    But the savings generated by the purchasing department increased operating profits by $10 million, which is almost three times the amount that the additional sales generated: $10 million vs. $3.6 million.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The salesforce sold $30M in additional products; purchasing negotiated $10M in material costs savings. If operating profit is 12%, how did ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers