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Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $16,800 (as shown in the statement below) inadequate for expanding his business.. The
Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $16,800 (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 $26,800 so he can obtain the bank's approval for the loan. % of sales Sales 280,000 100% Cost of supply chain purchases Other production costs 201,600 72% 28,000 10% Fixed costs Profit 33,600 12% 16,800 6% a) What percentage improvement is needed in a supply chain strategy for profit to improve to $26,800? What is the cost of material with a $26,800 profit? A decrease of % in supply-chain costs is required to yield a profit of $26,800, for a new cost of supply chain purchases of $ (Enter your response for the percentage decrease to one decimal place and enter your response for the new supply chain cost as a whole number.) b) What percentage improvement is needed in a sales strategy for profit to improve to $26,800? What must sales be for profit to improve to $26,800? An increase of % in sales is required to yield a profit of $26,800, for a new new level of sales of $ (Enter your response for the percentage increase to one decimal place and enter your response for the new sales as a whole number.)
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