The Candy Shack is in the process of finding suppliers for their candy stands

Subject:MathPrice: Bought3

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The Candy Shack is in the process of finding suppliers for their candy stands. They have determined to single-source their supply in order to focus on the buyer/vendor relationship. The Candy Shack has narrowed their supplier list to two candidates: Gem State, a local company in Pocatello, and Metro Candy, an online wholesaler. The table below contains the Candy Shack's weighted criteria for making this decision along with the raw scores for each of the two supplier options. 
 

Criteria	Weight	Gem State	Metro Candy
Price	0.20	7	10
Quality	0.25	9	8
Lead Time	0.30	5	10
Terms	0.20	3	7
Reputation	0.05	5	8

What is Gem State's weighted score for PRICE? (Display your answer to two decimal places.)
   

What is Metro's weighted score for PRICE? (Display your answer to two decimal places.)
   

 

What is Gem State's weighted score for QUALITY? (Display your answer to two decimal places.)

   

What is Metro's weighted score for REPUTATION? (Display your answer to two decimal places.)

   

What is Gem State's TOTAL weighted score? Display your answer to two decimal places.)

   

What is Metro's TOTAL weighted score? Display your answer to two decimal places.)

 

SM.61 A small but growing online retailer, Nile Corporation, has shown impressive growth in sales over the past several years, with sales this past year at $704,000.

If the company has a net profit margin of 2.5 percent, what would its net profit be (in dollars)? (Display your answer as a whole number.)
   

If in the next year the company achieves its revenue growth target of 13 percent, what would its total revenue be? (Display answer as a whole number.)
   

If in the next year the company achieves its revenue growth target of 13 percent, and assuming its profit margin remained unchanged at 2.5 percent, what would its total profit be for next year? (Display your answer as a whole number.)
   

If the company achieves its revenue growth target of 13 percent, by how many dollars will revenue increase? (Display  answer as a whole number.)

   

 

If the company achieves its revenue growth target of 13 percent, by how many dollars will net profit increase? (Display answer as a whole number.)

   

Using the original revenue number of $704,000, if the company spends 57 percent of its revenue on purchases, what would be its purchasing expense? (Display your answer as a whole number.)

   

Assuming that revenues stayed flat (meaning the company did not try to increase sales by the 13 percent target), by what percentage would they have to decrease purchasing expenses to equal the increased profit that would have come from a 13 percent increase to revenues? (Write your answer as a percentage, and display your answer to two decimal places.)
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SM.62 Suppose a company has $12,000,000 in (annual) revenue and spends 68% of its revenues on purchases. By how much can this company increase its bottom line (profits) if it can decrease purchasing costs by 1.55%? (Display your answer as a whole number.)

   

 

SM.63 A small company has $6,000,000 in (annual) revenue, spends 49% of its revenues on purchases, and has a net profit margin of 9.5%. They would like to increase their profits and they are looking at focusing in one of two directions. First, they think they can save 2.50% on their purchase expenses. Or second, they can focus on increasing sales.

By how many dollars would they have to increase sales in order to equal a 2.50% savings to purchasing expenses? (Display your answer as a whole number.)
   

SM.66 A small regional retailer is looking for ways to increase profits. Given its impressive record of growth, the sales and marketing vice president wants to target a 6% increase in sales to meet the profitability goals. The company currently has revenues of $23,000,000 (annually), spends 69% of its revenues on purchases, and has a net profit margin of 3%.

You are a buyer working for this company and you want to show the vice president that it may be easier to reach the profitability goals by lowering purchasing expenses.

If the company achieves its revenue growth target of 6%, by how many dollars would revenue increase? (Display your answer as a whole number.)
   

Assuming that revenues stayed flat (meaning the company did not try to increase sales by the 6 percent target), by what percentage would they have to decrease purchasing expenses to equal the increased profit that would have come from a 6 percent increase to revenues? (Write your answer as a percentage, and display your answer to two decimal places.)
   %
 

Note:  This question is to stretch your mind a bit and to show how much more, on a percentage basis, sales must increase in order to equal the bottom-line benefits of a modest decrease in purchasing expenses. There will not be a question like this on any assessment.

The sales increase targeted percentage is _____ (how many) times bigger than the required percentage decrease in purchasing expenses. (Display your answer as a whole number.)