Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $28,600 (as shown in the statement below) inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Kamal would like to improve profit line to $38,600 so he can obtain the bank's approval for the loan. Sales Cost of supply chain purchases Other production costs Fixed costs Profit 260,000 169,000 36,400 26,000 28,600 % of sales 100% 65% 14% 10% 11% a) What percentage improvement is needed in a supply chain strategy for profit to improve to $38,600? What is the cost of material with a $38,600 profit? A decrease of % in supply-chain costs is required to yield a profit of $38,600, for a new cost of supply chain purchases of $. (Enter your response for the percentage decrease to one decimal place and enter your response for the new supply chain cost as a whole number.) b) What percentage improvement is needed in a sales strategy for profit to improve to $38,600? What must sales be for profit to improve to $38,600? An increase of% in sales is required to yield a profit of $38,600, 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)
Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $28,600 (as shown in the statement below) inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Kamal would like to improve profit line to $38,600 so he can obtain the bank's approval for the loan. Sales Cost of supply chain purchases Other production costs Fixed costs Profit 260,000 169,000 36,400 26,000 28,600 % of sales 100% 65% 14% 10% 11% a) What percentage improvement is needed in a supply chain strategy for profit to improve to $38,600? What is the cost of material with a $38,600 profit? A decrease of % in supply-chain costs is required to yield a profit of $38,600, for a new cost of supply chain purchases of $. (Enter your response for the percentage decrease to one decimal place and enter your response for the new supply chain cost as a whole number.) b) What percentage improvement is needed in a sales strategy for profit to improve to $38,600? What must sales be for profit to improve to $38,600? An increase of% in sales is required to yield a profit of $38,600, 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)
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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Question
Transcribed Image Text:Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $28,600 (as shown in the statement
below) inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a
loan for some new equipment. Kamal would like to improve profit line to $38,600 so he can obtain the bank's approval
for the loan.
Sales
Cost of supply chain purchases
Other production costs
Fixed costs
Profit
260,000
169,000
36,400
26,000
28,600
% of sales
100%
65%
14%
10%
11%
a) What percentage improvement is needed in a supply chain strategy for profit to improve to $38,600? What is the cost
of material with a $38,600 profit?
% in supply-chain costs is required to yield a profit of $38,600, for a new cost of supply chain
A decrease of
purchases of $ (Enter your response for the percentage decrease to one decimal place and enter your response for
the new supply chain cost as a whole number.)
b) What percentage improvement is needed in a sales strategy for profit to improve to $38,600? What must sales be for
profit to improve to $38,600?
(Enter your
An increase of % in sales is required to yield a profit of $38,600, for a new new level of sales of $
response for the percentage increase to one decimal place and enter your response for the new sales as a whole
number.)
Expert Solution
Part a:
Find the Calculations below:
The decrease percentage is 5.9%
The new supply chain cost is $ 159000
Formulas:
Step by step
Solved in 2 steps with 4 images
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