b) What percentage improvement is needed in the sales strategy for profit to improve to $20,000? What must sales be for profit to improve to $20,000? An increase of ☐ % in sales is required to yield a profit of $20,000, 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.) 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.)
b) What percentage improvement is needed in the sales strategy for profit to improve to $20,000? What must sales be for profit to improve to $20,000? An increase of ☐ % in sales is required to yield a profit of $20,000, 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.) 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.)
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...
Related questions
Question
Transcribed Image Text:b) What percentage improvement is needed in the sales strategy for profit to improve to $20,000? What must sales
be for profit to improve to $20,000?
An increase of ☐ % in sales is required to yield a profit of $20,000, 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.)
Transcribed Image Text: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.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 1 steps
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.