Hau Lee Fumiture, 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 wouldlike to improve the profit line to $29,000 so he can obtain the bank's approval for the loan.SalesCost of materialProduction costsFixed costProfitCurrent 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 % in material (supply-chain) costs is required to yield a profit of $29,000, for a new material cost of $cost as a whole number.)(Enter your response for the percentage decrease to one decimal place and enter your response for the new material

Supply chains includes the resources and processes that are involved in the creation of products,…

Answered: Hau Lee Furniture, Inc., spends 45% of…

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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As an operations management consultant, you have been asked to evaluate a furniture manufacturer’s cash-to-cash conversion cycle under the following assumptions: sales of $26.4 million, cost of goods sold of $21.1 million, 50 operating weeks a year, total average on hand inventory of $2,350,000, accounts receivable equal to $2,435,000, and accounts payable of $3,695,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? inventory weeks of supply and accounts receivable weeks of supply or accounts payable weeks of supply are ways to improve overall firm performance.
1. Internal Controls-Revenue Cycle Jem Clothes, Inc., is a 25-store chain concentrated in thenortheastern United States that sells ready-to-wearclothes for young men and women. Each store has a fulltimemanager and an assistant manager, both of whomare paid a salary. The cashiers and sales personnel aretypically young people working part-time who are paidan hourly wage plus a commission based on sales volume.The accompanying flowchart for Problem 5 depictsthe flow of a sales transaction through the organizationof a typical store. The company uses unsophisticatedcash registers with four-part sales invoices to record eachtransaction. These sales invoices are used regardless ofthe payment type (cash, check, or bank card).On the sales floor, the salesperson manually recordshis or her employee number and the transaction(clothes, class, description, quantity, and unit price),totals the sales invoice, calculates the discount whenappropriate, calculates the sales tax, and prepares thegrand…
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Last Year Sales $208,000 $221,000 Cost of goods sold 106,000 116,000 Gross margin 102,000 105,000 Other expenses 49,000 49,000 Net income 53,000 56,000 Finished goods inventory 2,700 5,000 Work-in-process inventory 11,000 8,000 Raw material inventory 5,500 7,000 Total inventory (average for year) 19,200 20,000 Other current assets 93,000 109,000 Other assets 210,000 249,000 Total assets 322,200 378,000 ^THIS YEAR The plant manager, Murat Kristal, at York Technologies makes Aircraft Navigation Systems. He expects you, as the new OM analyst, to provide some insight for performance of the plant. High on his list is an understanding of his inventory…
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Hau Lee Furniture, Inc., spends 45% 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 like to improve the profit line to $20,000 so he can obtain the bank's approval for the loan. Current Situation Sales Cost of material $100,000 $45,000 (45%) Production costs Fixed cost Profit $25,000 (25%) $15,000 (15%) $15,000 (15%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $20,000? What is the cost of material with a $20,000 profit? A decrease of 11.1 % in material (supply-chain) costs is required to yield a profit of $20,000, for a new material cost of $40000. (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole number.)
The average days account receiveable/ days of inventory?

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