Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $4,800 (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 $14,800 so he can obtain the bank's approval for the loan. Sales Cost of supply chain purchases Other production costs Fixed costs Profit 240,000 172,800 33,600 28,800 4,800 % of sales 100% 72% 14% 12% 2% D a) What percentage improvement is needed in a supply chain strategy for profit to improve to $14,800? What is the cost of material with a $14,800 profit? A decrease of 5.79 % in supply-chain costs is required to yield a profit of $14,800, for a new cost of supply chain purchases of $ 162,800. (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 $14,800? What must sales be for profit to improve to $14,800? An increase of 29.76 % in sales is required to yield a profit of $14,800, for a new new level of sales of $311,429 (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 $4,800 (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 $14,800 so he can obtain the bank's approval for the loan. Sales Cost of supply chain purchases Other production costs Fixed costs Profit 240,000 172,800 33,600 28,800 4,800 % of sales 100% 72% 14% 12% 2% D a) What percentage improvement is needed in a supply chain strategy for profit to improve to $14,800? What is the cost of material with a $14,800 profit? A decrease of 5.79 % in supply-chain costs is required to yield a profit of $14,800, for a new cost of supply chain purchases of $ 162,800. (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 $14,800? What must sales be for profit to improve to $14,800? An increase of 29.76 % in sales is required to yield a profit of $14,800, for a new new level of sales of $311,429 (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
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Transcribed Image Text:Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $4,800 (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 $14,800 so he can obtain the bank's approval for the loan.
Sales
Cost of supply chain purchases
Other production costs
Fixed costs
Profit
% of sales
100%
72%
14%
12%
2%
D
240,000
172,800
33,600
28,800
4,800
a) What percentage improvement is needed in a supply chain strategy for profit to improve to $14,800? What is the cost of material with a $14,800 profit?
A decrease of 5.79 % in supply-chain costs is required to yield a profit of $14,800, for a new cost of supply chain purchases of $ 162,800. (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 $14,800? What must sales be for profit to improve to $14,800?
An increase of 29.76 % in sales is required to yield a profit of $14,800, for a new new level of sales of $311,429 (Enter your response for the percentage increase to one decimal place and enter your response for the new
sales as a whole number.)
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