Question : Use the information below to answer the following question(s): A retailer : 2065968

Use the information below to answer the following question(s):

A retailer operating a network of home improvement stores has annual sales of $800 million, annual cost of goods and materials purchased of $500 million, and net income of $125 million.

11) If a newly implemented strategic sourcing process is able to reduce the cost of goods and materials purchased by 15 percent, what would be the new net profit, given that annual sales and other costs remain unchanged?

A) $150 million

B) $175 million

C) $200 million

D) $250 million

12) What is the new profit margin with a 15-percent reduction in the cost of goods and materials purchased, assuming sales and other costs remain unchanged?

A) 10%

B) 15%

C) 20%

D) 25%

13) What should the new annual sales be to have the same effect on the bottom line as a 15-percent reduction in the cost of goods and materials purchased, other things remaining unchanged?

A) $500 million

B) $800.75 million

C) $1.280 billion

D) $1.5 billion

14) Purchased goods and services typically make up ________% of a firm's cost of goods sold.

15) Approximately ________ percent of an item or service's cost is determined in the design stage.