a) What percentage improvement is needed in a supply chain strategy for profit to improve to $25,000? b) What percentage improvement is meeded in a sales strategu for profit to improve to $25,000? What must sales be to improve to $25,000?
a) What percentage improvement is needed in a supply chain strategy for profit to improve to $25,000? b) What percentage improvement is meeded in a sales strategu for profit to improve to $25,000? What must sales be to improve to $25,000?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter7: Receivables And Investments
Section: Chapter Questions
Problem 7.4AP
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Transcribed Image Text:3 Supply Chain Management Ch 11
11.3
Din 12 ed
11.4
in 11 ed
5 Uriel
3
9
D
2
Kamal Fatehl, production manager of Kennesaw Manufacturing, finds his profit at $15,000--Inadeguate 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 the profit line to $25,000 so he can obtain the bank's approval for the loan.
a) What percentage improvement is needed in a supply chain strategy for profit to improve to $25,000?
b) What percentage improvement is meeded in a sales strategu for profit to improve to $25,000?
What must sales be to improve to $25,000?
Sales
Cost of Supply Chain Purcha
Other Production Costs
Fixed Costs
Profit
Sssss
$
$
$
$
$
250,000
175,000
30,000
30,000
15,000
% of Sales
100%
70%
12%
12%
6%
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