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2. Hau Lee Furniture, Inc. spends 60% of its sales dollars in the supply chain and finds its current profit of $10,000 inadequate. The bank
2. Hau Lee Furniture, Inc. spends 60% of its sales dollars in the supply chain and finds its current profit of $10,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to $25,000 so he can obtain the bank's approval for the loan Current Situation Sales $100,000 Cost of material $60,000 (60%) Production costs $20,000 (20%) Fixed cost $10,000 (10%) Profit $10,000 (10%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $25,000? What is the cost of material with a $25,000 profit? % decrease in material (supply-chain) costs is required to yield a profit of $25,000, for a new material cost of (Enter your responses as whole numbers.) b) What percentage improvement is needed in the sales strategy for profit to improve to $25,000? What must sales be for profit to improve to $25,000? ]% increase in sales is required to yield a profit of $25,000, for a new new level of sales of $ (Enter your responses as whole numbers) A
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