A Company Is Deciding Where to Assign Its Summer Intern

question 158

Essay

A company is deciding where to assign its summer intern. The manager estimates that the intern can save the company $8,000 in supply chain costs. Given the table below, what increase in sales (revenue) by the intern is required to show an equal profit?

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Definitions:

Purchasing Price

The price at which an item or service is bought, including taxes and additional fees.

Third Party

An entity involved in a transaction or situation which is neither the buyer nor the seller, but may have an interest or role.

Real Expenditures

Spending adjusted for inflation, which reflects the actual purchasing power of money on goods and services, providing a more accurate measure of economic activity.

Medicare

A federal program in the United States that provides health insurance to people who are 65 or older, and to younger people with certain disabilities.