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Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $42.000 inadequate. The bank

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Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $42.000 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 $47.000 so he can obtain the bank's approval for the loan Sales Current Situation $140,000 $63,000 (45%) Cost of material Production costs $21.000 (15%) Fixed cost Profit $14,000 (10%) $42.000 (30%)

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