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Business, 21.08.2019 19:20 lauraleemartinez

Suppose the firm in the above strategic profit model undertakes a supply chain improvement project. it improves its service level to customers by opening more warehouses which means it will be able to deliver more quickly to customers. the result is a 10% increase in sales. assume cost of goods sold increases by 6%. the new warehouse requires additional new asset investment of $40,000. fixed expenses increase by $1,000 because of the expense of operating the warehouses. assume other variables do not change. what is the firm’s new profit margin?

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