Asmall company has $4,000,000 in (annual) revenue, spends 54% of its revenues on purchases, and has a net profit margin of 12.5%. they would like to increase their profits and they are looking at focusing in one of two directions. first, they think they can save 2.05% 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 2.05% savings to purchasing expenses?

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.