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A Company Is Deciding Where to Assign Its Summer Intern

Question 15

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A company is deciding where to assign its summer intern. The manager estimates that the intern can save the company $10,000 in supply chain costs. What increase in sales (revenue) by the intern is required to show an equal profit?
 Supply Chain  costs  Variable Costs  (materials)  Profits % of current  sales  (revenue) 352540\begin{array} { | l | l | l | l | } \hline & \begin{array} { l } \text { Supply Chain } \\\text { costs }\end{array} & \begin{array} { l } \text { Variable Costs } \\\text { (materials) }\end{array} & \text { Profits } \\\hline \% \text { of current } & & & \\\text { sales } \\\text { (revenue) } & 35 & 25 & 40 \\\hline\end{array}

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Additional sales would increase costs by...

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