What is the cost of the material with a profit

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Reference no: EM131845437

Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $18,200 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 $28,200 so he can obtain the bank's approval for the loan.

		% of Sales
Sales	$260,000	100%
Cost of supply chain purchases	187,200	72%
Other production costs	26,000	10%
Fixed Costs	28,600	11%
Profit	18,200	7%

What percentage improvement is needed in a supply chain strategy for profit to improve to $28,200? What is the cost of the material with a $28,200 profit?

A decrease of ____% in supply chaing costs is required to uield a profit of $28,200 for a new cost of supply chaing purchases of $______.

Reference no: EM131845437

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