KHau Lee Furniture, Inc., spends 55% 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 somenew equipment. Hau would like to improve the profit line to $30,000 so he can obtain the bank's approvalfor the loan.SalesCost of materialProduction costsFixed costProfitCurrent Situation$100,000$55,000 (55%)$15,000 (15%)$5,000 (5%)$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 newmaterial cost of $. (Enter your response for the percentage decrease to one decimal place and enteryour 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 $30,000? Whatmust sales be for profit to improve to $30,000?An increase of % in sales is required to yield a profit of $30,000, for a new new level of sales of $(Enter your response for the percentage increase to one decimal place and enter your response for thenew sales as a whole number.)

Cost of the material = $55,000Current Profit = $25,000New Profit = $30,000The percentage of…

Answered: Hau Lee Furniture, Inc., spends 55% of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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