Every dollar flingers saves in purchasing has the same impact as what amount of increased sales?

The $20 amount of sales has increased

Explanation:

The amount of increased sales for the year 2014 is computed as:

Increased sales = Sales / Pre - tax earnings

where

Sales for the year amounts to $10,000,000

Pre - tax earnings for the year amounts to $500,000

Putting the values above:

Increased Sales = $10,000,000 / $500,000

= $20

Here we have to found, the increased sales, so only the sales amount and the earnings is considered while computing or evaluating the same.

NOTE: Here the question is missing as in the items are missing. So, I am providing the same. This is the question:

Flingers Company states the information in their annual report for the year 2014.

Earnings and Expense as:

Sales - $10,000,000

Cost of goods sold - $5,000,000

Pretax earnings - $500,000

Few Items of Balance Sheet

Merchandise inventory - $80,000

Total assets - $2,000,000