uiz: Module 3A (Chapter 11 & S11) Quiz is Question: 12 pts Cost of supply chain

Question

uiz: Module 3A (Chapter 11 & S11) Quiz is Question: 12 pts Cost of supply chain purchases Other producsion costs Foed costs 182 000 30 800 33 600 33 600 a) What percentage emprovement is needed in a supply chain strategy for proft to mprove to $43 6007 Whast is the cost of matenial with a $43 600 proir Adecreased %ns p?ychan costs is req redtoy eld a proft ors43 600,sor . new c ofsupply chanamhases os your" se the b) What percentage improvement is needed in a sales strategy for peolit to improve to 543,600 What must sales be for prollt to improve to $43,800 n each of the

Explanation / Answer

A.

Required increase in profit = 43600-33600 = $10000

So, required decrease in cost of supply chain = $10000

Now,

% decrease in the cost of supply chain = 1 - 172000/182000 = 5.5%

So, there should be a decrease of 5.5% in supply chain cost to increase the profit to $43600. New cost of supply chain purchase = $172000

B.

New level of profit = $43600

So, new level of sales = 43600*(100%/12%) = $363333.33 or $363333.

% increase in sales = (363333-280000)/280000

% increase in sales = 29.8%

So,

An increase of 29.8% in sales is required to yield a profit of $43600, for a new level of sales of $363333.

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.