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Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $25,000 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 $30,000 so he can obtain the bank's approval for the loan.

Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $25,000 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 $30,000 so he can obtain the bank's approval for the loan.

Practical Management Science
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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t K Sales Cost of material Production costs Fixed cost Profit $100,000 $45,000 (45%) $15,000 (15%) $15,000 (15%) $25,000 (25%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $30,000? What is the cost of material with a $30,000 profit? A decrease of% in material (supply-chain) costs is required to yield a profit of $30,000, for a new material cost of $. (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole number.)
Transcribed Image Text:t K Sales Cost of material Production costs Fixed cost Profit $100,000 $45,000 (45%) $15,000 (15%) $15,000 (15%) $25,000 (25%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $30,000? What is the cost of material with a $30,000 profit? A decrease of% in material (supply-chain) costs is required to yield a profit of $30,000, for a new material cost of $. (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole number.)
K Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $25,000 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 $30,000 so he can obtain the bank's approval for the loan. Sales Cost of material Production costs Fixed cost Profit Current Situation D $100,000 $45,000 (45%) $15,000 (15%) $15,000 (15%) $25,000 (25%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $30,000? What is the cost of
Transcribed Image Text:K Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $25,000 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 $30,000 so he can obtain the bank's approval for the loan. Sales Cost of material Production costs Fixed cost Profit Current Situation D $100,000 $45,000 (45%) $15,000 (15%) $15,000 (15%) $25,000 (25%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $30,000? What is the cost of
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