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.)

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $22,400 (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 $32,400 so he can obtain the bank's approval for the loan. % of sales Sales 280,000 100% Cost of supply chain purchases 201,600 72% Other production costs 28,000 10% Fixed costs 28,000 10% Profit 22,400 8% Part 2 a) What percentage…
Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $28,600 (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 $38,600 so he can obtain the bank's approval for the loan. Sales Cost of supply chain purchases Other production costs Fixed costs Profit 260,000 169,000 36,400 26,000 28,600 % of sales 100% 65% 14% 10% 11% a) What percentage improvement is needed in a supply chain strategy for profit to improve to $38,600? What is the cost of material with a $38,600 profit? % in supply-chain costs is required to yield a profit of $38,600, for a new cost of supply chain A decrease of 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.) b) What percentage improvement is needed in a sales strategy…
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K Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $30,800 (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 $40,800 so he can obtain the bank's approval for the loan. Sales Cost of supply chain purchases Other production costs Fixed costs Profit 280,000 182,000 39,200 28,000 30,800 % of sales 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 5.5% in supply-chain costs is required to yield a profit of $40,800, for a new cost of supply chain purchases of $172,000. (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…
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