Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $
ID: 327716 • Letter: K
Question
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 loar Sales Cost of supply chain purchases Other production costs Fixed costs Profit % of sales 100% 72% 11% 11% 6% 280,000 201 ,600 30,800 30,800 16,800 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, or a new cost of supply chain purchases o $ Enter your response or 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 o ? in sales is required to yield a profit of $26,800 or a new new evel o sales o $ Enter your response forthe e centage increase one decimal place and enter your response for the new sales as a whole number.)Explanation / Answer
a-Current profit= $16,800 so to have $26,800 profit level cost of supply chain should be decreased by $10,000.New supply chain will be $201,600-$10,000= $211,600. Decrease % is 10,000/201,600=4.96%.
Ans- 4.96% and $191,600
b- There should be increase of $10,000 sales which will be 3.57%(10,000/280,000), new sales level= $290,000($280,000+$10,000)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.