7.1 – If the purchase were 45% of sales and the other expenses were 45% of sales, what would be the increase in profit if, through better purchasing, the cost of purchase was reduced to 43% of sales?
7.2 – If suppliers were to be rated on the following basis, what would be the ranking of the two suppliers listed?
Rating of Suppliers Ranking of Suppliers
Factor Weight Supplier A Supplier B Supplier A Supplier B
Function 7 8 9
Cost 5 9 5
Technical Assistance 4 5 7
Credit Terms 1 8 4
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