Homework Help is Here – Start Your Trial Now!
Business
Operations Management
Sales Cost of supply chain purchases Other production costs Fixed costs Profit 280,000 182,000 39,200 28,000 30,800 100% 65% 14% 10% 11% a) What percentage improvement is needed in a supply chain strategy for profit to improve to $40,800? What is the cost of material with a $40,800 profit? A decrease of% in supply-chain costs is required to yield a profit of $40,800, 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.)

Sales Cost of supply chain purchases Other production costs Fixed costs Profit 280,000 182,000 39,200 28,000 30,800 100% 65% 14% 10% 11% a) What percentage improvement is needed in a supply chain strategy for profit to improve to $40,800? What is the cost of material with a $40,800 profit? A decrease of% in supply-chain costs is required to yield a profit of $40,800, 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.)

Practical Management Science
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...
See similar textbooks
icon
Related questions
Question
**Scenario:** Kamal Fatehi, the production manager of Kennesaw Manufacturing, finds his profit at $30,800, which he considers inadequate for expanding his business. The bank requires an improved profit picture for loan approval for new equipment. Kamal aims to increase the profit to $40,800 to secure the bank's approval. **Financial Statement:** | Description | Amount ($) | % of Sales | |-------------------------------|------------|------------| | Sales | 280,000 | 100% | | Cost of supply chain purchases | 182,000 | 65% | | Other production costs | 39,200 | 14% | | Fixed costs | 28,000 | 10% | | Profit | 30,800 | 11% | **Question:** a) What percentage improvement is needed in a supply chain strategy for profit to improve to $40,800? What is the cost of material?
Transcribed Image Text:**Scenario:** Kamal Fatehi, the production manager of Kennesaw Manufacturing, finds his profit at $30,800, which he considers inadequate for expanding his business. The bank requires an improved profit picture for loan approval for new equipment. Kamal aims to increase the profit to $40,800 to secure the bank's approval. **Financial Statement:** | Description | Amount ($) | % of Sales | |-------------------------------|------------|------------| | Sales | 280,000 | 100% | | Cost of supply chain purchases | 182,000 | 65% | | Other production costs | 39,200 | 14% | | Fixed costs | 28,000 | 10% | | Profit | 30,800 | 11% | **Question:** a) What percentage improvement is needed in a supply chain strategy for profit to improve to $40,800? What is the cost of material?
### Financial Breakdown of a Company #### Sales and Costs Overview - **Sales:** $280,000 (100%) - **Cost of Supply Chain Purchases:** $182,000 (65%) - **Other Production Costs:** $39,200 (14%) - **Fixed Costs:** $28,000 (10%) - **Profit:** $30,800 (11%) #### Problem-Solving Scenario **Question:** What percentage improvement is needed in a supply chain strategy for profit to increase to $40,800? Additionally, determine the new cost of materials to achieve this target profit. **Solution Approach:** A decrease of [ ]% in supply-chain costs is required to yield a profit of $40,800, resulting in 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.)*
Transcribed Image Text:### Financial Breakdown of a Company #### Sales and Costs Overview - **Sales:** $280,000 (100%) - **Cost of Supply Chain Purchases:** $182,000 (65%) - **Other Production Costs:** $39,200 (14%) - **Fixed Costs:** $28,000 (10%) - **Profit:** $30,800 (11%) #### Problem-Solving Scenario **Question:** What percentage improvement is needed in a supply chain strategy for profit to increase to $40,800? Additionally, determine the new cost of materials to achieve this target profit. **Solution Approach:** A decrease of [ ]% in supply-chain costs is required to yield a profit of $40,800, resulting in 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.)*
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
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…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS