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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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