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A Company Has Sales of $150 Million,cost of Goods Sold

Question 1

Multiple Choice

A company has sales of $150 million,cost of goods sold of $100 million,and a before-tax profit of 8%.If purchasing was able to reduce the cost of goods sold by $5 million,how much additional sales would be required to achieve the same impact on profit?


A) $5 million.
B) $10 million.
C) $55 million.
D) $62.5 million.

Correct Answer:

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