Sales = 11996.6 COGS = 7695 Profit = 4302 If the company wants to increase the...

Sales = 11996.6

COGS = 7695

Profit = 4302

If the company wants to increase the profit by 10% what should the sales and cogs be?

Solutions

Expert Solution

If the company wants to increase the profits by 10% then sales and cost of goods sold (COGS) should also be increased by 10%.

Let's prove it -

Profit after 10% increase is $4,731.76 ($4,301.6*110/100)

* Profit is $4,301.6 = $11,996.6 - $7,695

Sales after 10% increase is $13,196.26 ($11,996.6*110/100)

Cost of goods sold (COGS) after 10% increase is $8,464.50 ($7,695*110/100).

Therefore, profit is $4,731.76 ($13,196.26 - $8,464.50).

Thus, the sales are $13,196.26 and COGS is $8,464.50 when profits increases by 10%.

ekkarill92 answered 2 years ago

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