Question
PLEASE ANSWER PART B. Thanks Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $33,600 (as shown in the statement below) inadequate for
PLEASE ANSWER PART B. Thanks
Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $33,600 (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 $43,600 so he can obtain the bank's approval for the loan.
% of sales | ||
Sales | 280,000 | 100% |
Cost of supply chain purchases | 182,000 | 65% |
Other production costs | 30,800 | 11% |
Fixed costs | 33,600 | 12% |
Profit | 33,600 | 12% |
Part 2
a) What percentage improvement is needed in a supply chain strategy for profit to improve to $43,600?
What is the cost of material with a $43,600 profit?
A decrease of 5.5% in supply-chain costs is required to yield a profit of $43,600, for a new cost of supply chain purchases of $172,000.
(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.)
Part 3
b) What percentage improvement is needed in a sales strategy for profit to improve to $43,600? What must sales be for profit to improve to $43,600?
An increase of ____% in sales is required to yield a profit of $43,600, 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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