How many dollars would they have to increase sales


Problem: A small company has $8,000,000 in (annual) revenue, spends 50% of its revenues on purchases, and has a net profit margin of 13.5%. 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? (Display your answer as a whole number.)

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