Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $
ID: 377709 • Letter: K
Question
Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $19,200 (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 $29,200 so he can obtain the bank's approval for the loan. Sales Cost of supply chain purchases Other production costs Fixed costs Profit 240,000 163,200 33,600 24,000 19,200 % of sales 100% 68% 14% 10% a) What percentage improvement is needed in a supply chain strategy for profit to improve to $29,200? What is the cost of material with a $29,200 profit? A decrease of % in supply-chain costs is required to yield a profit of $29, 200, for a new cost of supply chain purchases of $. (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) b) What percentage improvement is needed in a sales strategy for profit to improve to $29,200? What must sales be for profit to improve to $29.200? An increase of % in sales is required to yield a profit of $29,200, 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 Enter your answer in each of the answer boxes.Explanation / Answer
a) A decrease of 6.1% in supply chain costs is required to yield a profit of $29,200 for a new cost of supply chain purchases of $ 153,200
b) An increase in 4.1 % in sales is required to yield a profit of $29,200, for a new level of sales of $ 250,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.