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Use the following information to answer the following question(s). ABC Tools

Question : Use the following information to answer the following question(s). ABC Tools : 2065967

Use the following information to answer the following question(s).

ABC Tools has annual sales of $50 million, annual materials cost of $28 million, and net income of $5 million.

6) If a new purchasing agent is able to reduce the cost of materials by 10 percent, what would be the addition to the bottom line?

A) $5 million

B) $2.8 million

C) $10 million

D) $15 million

7) What is the new profit margin with a 10-percent reduction in the cost of materials, assuming sales remain the same?

A) 10%

B) 13.5%

C) 15.6%

D) 20%

8) What is the required increase in sales to have the same effect on the bottom line as a 10-percent reduction in the cost of materials?

A) 25%

B) 50%

C) 56%

D) 100%

9) The impact of sourcing materials or services with improved quality for a firm is

A) possible higher product selling prices.

B) higher perceived value.

C) increased market share.

D) higher profitability.

E) all of the above.

10) The impact of sourcing materials or services with improved quality for a firm is

A) lower profitability.

B) higher perceived value.

C) increased market share.

D) all of the above.

E) only B and C above.

 

 

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Supply Chain Management 2 Years Ago 384 Views
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