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b) What percentage improvement is needed in the sales strategy for profit to imp

ID: 2785666 • Letter: B

Question

b) What percentage improvement is needed in the sales strategy for profit to improve to $21,000?

What must sales be for profit to improve to $21,000?

An increase of % in sales is required to yield a profit of $21,000, 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.)

Homework: Chapter 11 Homework Score: 0 of 1 pt X Problem 11.2 Hau Lee Furniture, Inc., spends 50% of its sales dollars in the supply chain and finds its current profit of $14,000 inadequate. The bank is insisting on an improved Save 1 of 18 (1 complete) | HW Score: 0%, 0 of 18 pts | Question Help profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to $19,000 so he can obtain the bank's approval for the loan Sales Cost of material Production costs Fixed cost Profit Current Situation $140,000 $70,000 (50%) $35,000 (25%) $21,000 (15%) $14,000 (10%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $19,000? What is the cost of material with a $19,000 profit? A decrease o in material supply chain costs is required to yield a profit of $19,000 or a new material cost of $ Enter your esponse or ercentage decrease to one decimal place and enter your response for the new material cost as a whole number) Enter your answer in the edit fields and then click Check Answer part remaining Clear All Check Answer

Explanation / Answer

Required profit=21000 and profit is 10% of sales and let sales be X

21000=X-0.5x-0.25x-21000

X=168000

% improvement =(168000/140000)-1=20%
Sales=168000