please answer and give me step by step The Spencer Corporation is analyzing its
ID: 2772872 • Letter: P
Question
please answer and give me step by step The Spencer Corporation is analyzing its annual sales revenue, costs, and profits for a specific product line. The figures indicate that a lot of money is being spent on costs and the profits are lower than desired. The CEO wants to evaluate two strategies for increasing profits: a supply chain strategy of reducing material costs or a sales strategy of increasing sales. Examine the data below and answer the following question.The company would like to increase the profit for this product line by $5,000 per year. By what percentage would the company have to reduce its Cost of Materials in order to achieve the desired profit if the other items remain the same? Your answer should be in the format of a percentage with three (3) decimal places. Do not insert the percent symbol or any text into the response box below.Explanation / Answer
Ans, Company will have to reduce its cost of material by 7.166% (5000/69770)
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