Hau Lee Furniture, Inc., spends 50% of its sales dollars in the supply chain and finds its current profit of $35,000 inadequate. The bank is insisting on animproved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to $40,000 so he can obtainthe bank's approval for the loan.SalesCost of materialProduction costsFixed costProfitCurrent Situation$140,000$70,000 (50%)$21,000 (15%)$14,000 (10%)$35,000 (25%)Da) What percentage improvement is needed in the supply chain strategy for profit to improve to $40,000? What is the cost of material with a $40,000profit?A decrease of % in material (supply-chain) costs is required to yield a profit of $40,000, for a new material cost of $. (Enter your response for thepercentage decrease to one decimal place and enter your response for the new material cost as a whole number.)

Answered: Hau Lee Furniture, Inc., spends 50% 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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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 would like to improve the profit line to $29,000 so he can obtain the bank's approval for the loan. Sales Cost of material Production costs Fixed cost Profit 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 % 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
Is this statement true or false? Please explain in detail. Savings in the supply chain exert more leverage as the firm`s net profit margin decreases
The Average days of inventory is?
Analyze a real-world case study where a company successfully applied the Wilson approach to optimize its inventory management. What were the outcomes?
List and describe the differences between forecasts and predictions?
Do prospects have the Monetary resources to make the purchase?
A typical Latino coffee farmer has fixed costs of $10,000 per year. Under the old distribution system, the farmer is paid $.40 per pound (U.S. weight measure) and the farmer’s variable cost per pound is $.30. What is the farmer’s breakeven point in units (pounds) under the old system? What is the farmer’s breakeven point in dollars? Show all math.
Using the partially completed figure and the results of your quarterly leveled production calculation, now calculate the ending inventory per quarter. Family B Quarter 0 1 2 3 4 SUM Forecast 50 100 200 70 420 Production (leveled) Ending Inventory 100 140 What is the ending inventory for quarter 3? 80 140 95 180
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?
Alar is a manager at Shoeless Joe's Sports Bar and Grill and was approached by a hockey team asking for sponsorship. Sponsorship would mean purchasing 18 jerseys for the team BUT would see the team visit the restaurant on a regular basis. • The EXPECTED RETURNS for the restaurant from these visits would be Gross Sales of $2,000 per year for an expected five years. (Assume the restaurants profit margin on food/alcohol sales is 40%, so USE NET PROFIT of $800 per year for all calculations). Further, the jerseys would have the Shoeless Joe's logo and act as advertising (a goodwill function in accounting), BUT this is not considered in the calculations. Alar remembers something about CLTV in college and wants to calculate the CLTV using different methods on ONLY the future expected business from the team ($800 per year) (ignore advertising or goodwill from the jerseys). Determine: a) The CLTV of the team for "five years" using the "Easy Method". b) The CLTV of the team using the "Simple…
Consider a three-firm supply chain consisting of a retailer, manufacturer, and supplier. The retailer's demand over an 8-week period was 110 units each of the first 2 weeks, 220 units each of the second 2 weeks, 280 units each of the third 2 weeks, and 400 units each of the fourth 2 weeks. The following table presents the orders placed by each firm in the supply chain. Notice, as is often the case in supply chains due to economies of scale, that total units are the same in each case, but firms further up the supply chain (away from the retailer) place larger, lessfrequent, orders. Week Retailer Manufacturer Supplier 1 110 220 660 2 110 3 220 440 4 220 5 280 560 1360 6 280 7 400 800 8…

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