K Hau Lee Furniture, Inc., spends 55% of its sales dollars in the supply chain and finds its current profit of $21,000 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 $26,000 so he can obtain the bank's approval for the loan Sales Cost of material Production costs Fixed cost Profit Current Situation $140,000 $77,000 (55%) $21,000 (15%) $21,000 (15%) $21,000 (15%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $26,000? What is the cost of material with a $26,000 profit? A decrease of 6.5 % in material (supply-chain) costs is required to yield a profit of $26,000, for a new material cost of $ 72000. (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole number) b) What percentage improvement is needed in the sales strategy for profit to improve to $26,000? What must sales be for profit to improve to $26,000? An increase of 3.6% in sales is required to yield a profit of $26,000, for a new new level of sales of $145000 (Enter your response for the percentage increase to one decimal place and enter your response for the new sales as a whole number.)