b) What percentage improvement is needed in a sales strategy for profit to improve to $40,800? What must sales be for profit to improve to $40,800? An increase of% in sales is required to yield a profit of $40,800, 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.)

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...
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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 sales strategy for profit to improve to $40,800? What must sales be for
profit to improve to $40,800?
An increase of % in sales is required to yield a profit of $40,800, 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.)
ncc
Transcribed Image Text: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 sales strategy for profit to improve to $40,800? What must sales be for profit to improve to $40,800? An increase of % in sales is required to yield a profit of $40,800, 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.) ncc
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