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Use the Information Below to Answer the Following Question(s)

Question 41

Multiple Choice

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.
-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

Correct Answer:

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