The growing Internet retailer \"Nile\" corporation has shown impressive growth i

Question

The growing Internet retailer "Nile" corporation has shown impressive growth in sales over the past several years, with sales this past year at $220 million.

If the company has a net profit margin of 1.5%, what would its net profit be? $____ million (Round your answer to two decimal places.)

If in the next year the company achieves its revenue growth target of 4%, what would its total revenue be? $___ million (Round your answer to two decimal places.)

If in the next year the company achieves its revenue growth target of 4%, and assuming its profit margin remained unchanged at 1.5%, what would its total profit be for next year? $___ million (Round your answer to three decimal places.)

The new total revenue for next year (answered in two questions back) represents an increase to revenue of $___ million (Round your answer to two decimal places.)

The increase in total revenue (answered in the previous question) would increase profit by $___ million (Round your answer to four decimal places.)

Using the original revenue number of $220 million, if the company spends 67% of its revenue on purchases, what would be its purchasing expense? $____ million (Round your answer to two decimal places.)

Explanation / Answer

Solution:

1 Sales 220 Net profit - 1. 5% 3.3 2 Sales 220 Add: 4 % increase 8.8 Increased revenue 228.8 3 Increased revenue 228.8 Net profit - 1. 5% 3.432 4 Increase in revenue After increase revenue 228.8 Before increase 220 Icrease in revenue 8.8

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