Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hau Lee Furniture, Inc., spends 6 0 % of its sales dollars in the supply chain and finds its current profit of $ 1 0

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%) Part 2 a) What percentage improvement is needed in the supply chain strategy for profit to improve to $25000? What is the cost of material with a $25000 profit? b) A _____% decrease in material (supply-chain) costs is required to yield a profit of $25000, for a new material cost of $______(Enter your responses as whole numbers.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Pain Management Workbook

Authors: Rachel Zoffness, Mark A. Schumacher

1st Edition

1684036445, 978-1684036448

More Books

Students also viewed these General Management questions