Score: 0 of 50 pts 1 of 3 (0 complete) Hw Score: 0%, 0 of 100 p Problem 11.4 Que

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Score: 0 of 50 pts 1 of 3 (0 complete) Hw Score: 0%, 0 of 100 p Problem 11.4 Question Help Kamal Fatehi production manager of Kennesaw Manufacturing, finds his profit at $18,200 (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 $28,200 so he can obtain the bank's approval for the loan. Sales Cost of supply chain purchases187.200 Other production costs Fixed costs Profit % of sales 100% 72% 11% 10% 7% 26,000 18,200 a) What percentage improvement is needed in a supply chain strategy for profit to improve to $28,200? What is the cost of material with a $28,200 profit? A decrease of % n supply hain costs is required to yield a profit o $28 200 for a new cost of supply chain purchases of S to one decimal place and enter your response for the new supply chain cost as a whole number) nteryo rresponse for the per enta e de ease Enter your answer in the edit fielas and then click Check Answer weingartenz swt Show All 2 MacBook Air

Explanation / Answer

The profit needs to be increased from $18200 to $28200. this means we need to decrease supply chain purchase by $10000.

New Cost of Supply chain purchase = $177200 i.e. 68.15% of Sales

% Decrease of cost required = (187200-177200) / 187200 = 5.34%

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