Improvement is needed in the supply chain strategy

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Reference no: EM131734772

Hau Lee? Furniture, Inc., spends 45?% of its sales dollars in the supply chain and finds its current profit of ?$42,000 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 ?$47,000 so he can obtain the? bank's approval for the loan.

,Current Situation,

Sales, "140,000",

Cost of material, "63,000",(45%)

Production cost, "21,000",(15%)

Fixed cost, "14,000",(10%)

Profit, "42,000",(30%)

a) What percentage improvement is needed in the supply chain strategy for profit to improve to? $47,000??

What is the cost of material with a ?$47,000 ?profit?

A decrease of ________ % in material? (supply-chain) costs is required to yield a profit of $47,000?, for a new material cost of ?$________.

?(Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole? number.)

What percentage improvement is needed in the sales strategy for profit to improve to ?$47,000??

What must sales be for profit to improve to ?$47,000??

An increase of _______? % in sales is required to yield a profit of ?$47,000? , for a new new level of sales of ?$_______.

?(Enter your response for the percentage increase to one decimal place and enter your response for the new sales as a whole? number.)

Reference no: EM131734772

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