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Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $26,000 (as shown in the statement below) inadequate for expanding his business. The
Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $26,000 (as shown in the statement below) inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Kamal would like to improve profit line to $36,000 so he can obtain the bank's approval for the loan. % of sales Sales 260,000 100% Cost of supply chain purchases Other production costs 176,800 68% 28,600 11% Fixed costs Profit 28,600 11% 26,000 10% a) What percentage improvement is needed in a supply chain strategy for profit to improve to $36,000? What is the cost of material with a $36,000 profit? A decrease of % in supply-chain costs is required to yield a profit of $36,000, for a new cost of supply chain purchases of $ place and enter your response for the new supply chain cost as a whole number.) . (Enter your response for the percentage decrease to one decima b) What percentage improvement is needed in a sales strategy for profit to improve to $36,000? What must sales be for profit to improve to $36,000? An increase of % in sales is required to yield a profit of $36,000, for a new new level of sales of $ response for the new sales as a whole number.) (Enter your response for the percentage increase to one decimal place and enter your
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