Hau Lee Furniture, Inc, spends 55% of its sales dollars in the supply chain and finds its current profit of $15,000 inadequate. The bank is insisting on an im profit picture prior to approval of a loan for some new equipment Hau would like to improve the profit line to $20,000 so he can obtain the bank's approval loan Current Situation $100,000 $55,000 (55%) $15,000 (15%) $15,000 (15%) $15,000 (15%) Sales Cost of material Production costs Fixed cost Profit a) What percentage improvement is needed in the supply chain strategy for profit to improve to $20,0007 What is the cost of material with a $20,000 profir? A decrease of % in material (supply-chain) costs is required to yield a profit of $20,000, for a new material cost of S (Enter your response for the pere decrease to one decirmal place and enter your resporise for the new material cost as a whole number.)
Hau Lee Furniture, Inc, spends 55% of its sales dollars in the supply chain and finds its current profit of $15,000 inadequate. The bank is insisting on an im profit picture prior to approval of a loan for some new equipment Hau would like to improve the profit line to $20,000 so he can obtain the bank's approval loan Current Situation $100,000 $55,000 (55%) $15,000 (15%) $15,000 (15%) $15,000 (15%) Sales Cost of material Production costs Fixed cost Profit a) What percentage improvement is needed in the supply chain strategy for profit to improve to $20,0007 What is the cost of material with a $20,000 profir? A decrease of % in material (supply-chain) costs is required to yield a profit of $20,000, for a new material cost of S (Enter your response for the pere decrease to one decirmal place and enter your resporise for the new material cost as a whole number.)
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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![Hau Lee Furniture, Inc spends 55% of its sales dollars in the supply chain and finds its current profit of $15,000 inadequate. The bank is insisting on an improved
profit picture prior to approval of a loan for some new equipment Hau would ike to improve the profit line to $20,000 so he can obtain the bank's approval for the
loan
Current Situation
Sales
$100,000
$55,000 (55%)
$15,000 (15%)
Cost of material
Production costs
Fixed cost
$15,000 (15%)
Profit
$15,000 (15%)
a) What percentage improvement is needed in the supply chain strategy for profit to improve to $20,0007 What is the cost of material with a $20,000 profit?
A decrease of% in matenial (supply-chain) costs is required to yield a profit of $20,000, for a new material cost of S (Enter your response for the percentage
decrease to one decimal place and enter your resporise for the new matenal cost as a whole number.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18d0afad-32cd-4423-8469-d8df73a004e5%2F9b30de54-dfe6-4735-a707-ea7e86b55359%2Fcamp6j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Hau Lee Furniture, Inc spends 55% of its sales dollars in the supply chain and finds its current profit of $15,000 inadequate. The bank is insisting on an improved
profit picture prior to approval of a loan for some new equipment Hau would ike to improve the profit line to $20,000 so he can obtain the bank's approval for the
loan
Current Situation
Sales
$100,000
$55,000 (55%)
$15,000 (15%)
Cost of material
Production costs
Fixed cost
$15,000 (15%)
Profit
$15,000 (15%)
a) What percentage improvement is needed in the supply chain strategy for profit to improve to $20,0007 What is the cost of material with a $20,000 profit?
A decrease of% in matenial (supply-chain) costs is required to yield a profit of $20,000, for a new material cost of S (Enter your response for the percentage
decrease to one decimal place and enter your resporise for the new matenal cost as a whole number.)
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