Margaret Williams, production manager at Williams Manufacturing, finds her profits at $15,000 inadequate for her business. The bank is insisting on an improved profit picture prior to an approval of a loan for some new equipment. Margaret would like to improve the profit line to $25,000 so she can obtain the approval for the loan. Given the information below and using a Sales Strategy, what percentage change of sales would need to be increased to achieve a $25,000 profit?

FACTOR Sales Percentage 100% 70% Cost of Supply Chain Purchases Production Costs Current Situation $250,000 $175,000 $30,000 $30,000 $15,000 12% 12% Fixed Costs Profit 6% 11.1% increase 14.4% increase 18.8% increase 22.2% increase 0 E 26.6% increase