how much would sa;es/marketing need to increase sales to have the same effect as decreasing cogs by 1400

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I can't find the complete or same question on the internet but I did find a similar question which is as under:

Sales Revenues = $80,000

Profit Margin = 15%

Pretax Earnings = $12,000

How much would Sales/Marketing need to increase Sales to have the same effect as decreasing COGS by $1500?

$10,000 increase in sales is required.

Explanation:

Here, we are given pretax earnings of $12,000 which is 15% of total sales of $80,000.

The reduction in cost of goods sold by $1500 will increase the pretax earnings to $13500. Now again, it is 15% of the total sales because we are finding new sales required that would increase the pretax earnings to $13,500.

So this implies that:

$13,500 is 15% of New Total Sales

Mathmatically,

$13,500 = 15% * New Total Sales

New Total Sales = $13,500 / 15%

New Total Sales = $90,000                

Hence the additional sales required = New Total Sales     -   Previous Total Sales

Additional Sales Required = $90,000 - $80,000

= $10,000

We are given that the profit margin is 15% which means:

Sales (100%) - Cost (85%) = Profit (15%)

If the Profit Increase given is $1500 then the sales required for this increase would be:

Sales required = $1500 / 15% = $10,000

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