Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $
ID: 464341 • Letter: K
Question
Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $23,400 (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 $33,400 so he can obtain the bank's approval for the loan. What percentage improvement is needed in a supply chain strategy for profit to improve to $33,400? What is the cost of material with a $33,400 profit? A decrease of % in supply-chain costs is required to yield a profit of $33,400, 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.) What percentage improvement is needed in a sales strategy for profit to improve to $33,400? What must sales be for profit to improve to $33,400? An increase of % in sales is required to yield a profit of $33,400, 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.)Explanation / Answer
a) For profit to be $33, 400, the Supply chain costs should decrease by $10,000
Decrease in Supply Chain Costs = 10,000/169,000 = 5.9%
New Supply Chain Cost = $ 159000
b) For profit to be $33,400, Sales should increase by $10,000
Increase in Sales = 10,000/260,000 = 3.9%
New Sales Value = $270000
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