Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $24,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to $29,000 so he can obtain the bank's approval for the loan. 9 Current Situation $80,000 $36,000 (45%) $16,000 (20%) $4,000 (5%) $24,000 (30%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $29,000? What is the cost of material with a $29,000 profit? A decrease of 13.9% in material (supply-chain) costs is required to yield a profit of $29,000, for a new material cost of $31000 (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole number) b) What percentage improvement is needed in the sales strategy for profit to improve to $29,000? What must sales be for profit to improve to $29,000? An increase of 35% in sales is required to yield a profit of $29 000 for a new new level of sales of $ (Enter your response for the percentage increase to one decimal place an Sales Cost of material Production costs Fixed cost Profit enter your response for the back
Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $24,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to $29,000 so he can obtain the bank's approval for the loan. 9 Current Situation $80,000 $36,000 (45%) $16,000 (20%) $4,000 (5%) $24,000 (30%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $29,000? What is the cost of material with a $29,000 profit? A decrease of 13.9% in material (supply-chain) costs is required to yield a profit of $29,000, for a new material cost of $31000 (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole number) b) What percentage improvement is needed in the sales strategy for profit to improve to $29,000? What must sales be for profit to improve to $29,000? An increase of 35% in sales is required to yield a profit of $29 000 for a new new level of sales of $ (Enter your response for the percentage increase to one decimal place an Sales Cost of material Production costs Fixed cost Profit enter your response for the back
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $24,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would
like to improve the profit line to $29,000 so he can obtain the bank's approval for the loan.
Current Situation
Sales
Cost of material
Production costs
Fixed cost
Profit
$80,000
$36,000 (45%)
$16,000 (20%)
$4,000 (5%)
$24,000 (30%)
a) What percentage improvement is needed in the supply chain strategy for profit to improve to $29,000? What is the cost of material with a $29,000 profit?
A decrease of 13.9 % in material (supply-chain) costs is required to yield a profit of $29,000, for a new material cost of $31000 (Enter your response for the percentage decrease to one decimal place and enter your response for the new
material cost as a whole number)
b) What percentage improvement is needed in the sales strategy for profit to improve to $29,000? What must sales be for profit to improve to $29,000?
An increase of 35% in sales is required to yield a profit of $29,000, 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.)
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