Kamal Fate production manager of Kennesaw Manufacturing, finds his profit at $26,400 (as shown in the statement below) inadequate for expanding his business. The bank is insisting on an improvedprofit picture prior to approval of a loan for some new equipment Kamal would like to improve profit line to $36,400 so he can obtain the bank's approval for the loanSalesCost of supply chan purchasesOther production costs240,000163,200Faxed costsProf% of sales100%68%10%11%11%24,00026,40026,400a) What percentage improvement is needed in a supply chain strategy for profit to improve to $36 400? What is the cost of material with a $36,400 profit?A decrease of in supply chain costs is required to yield a prott of $36,400, for a new cost of supply chain purchases of $ (Enter your response for the percentage decrease to one decimal placeand enter your response for the new supply chain cost as a whole number)O

Let me state the given data, Percentage of salesSales240000100.00%Cost of supply chain…

Answered: Kamal Fatehi production manager of…

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 $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…
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…
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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Alar is a manager at Shoeless Joe's Sports Bar and Grill and was approached by a hockey team asking for sponsorship. Sponsorship would mean purchasing 18 jerseys for the team BUT would see the team visit the restaurant on a regular basis. • The EXPECTED RETURNS for the restaurant from these visits would be Gross Sales of $2,000 per year for an expected five years. (Assume the restaurants profit margin on food/alcohol sales is 40%, so USE NET PROFIT of $800 per year for all calculations). Further, the jerseys would have the Shoeless Joe's logo and act as advertising (a goodwill function in accounting), BUT this is not considered in the calculations. Alar remembers something about CLTV in college and wants to calculate the CLTV using different methods on ONLY the future expected business from the team ($800 per year) (ignore advertising or goodwill from the jerseys). Determine: a) The CLTV of the team for "five years" using the "Easy Method". b) The CLTV of the team using the "Simple…
Q: How the net profit is calculated for product explain and derive formula for it?
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Q3: Kimberly owns and operates a tennis shop in a resort area. The business is seasonal. A largepart of the annual revenues are due to sales in June, July, and August. Kimberly keeps theshop open during the remaining months of the year, but the inventory carried during thosemonths is reduced. During the summer months, the amount of inventory on hand issubstantially increased. Kimberly has the business insured under the special formbusinessowners policy (BOP) with no endorsements attached.a. Assume you are a risk management consultant. Identify the major loss exposures thatKimberly faces.b. Assume that a covered loss occurs in July, which damages part of the inventory. Does theBOP provide any protection for the increase in inventory during the summer months?c. Kimberly plans to hire an additional employee during the summer months when sales areincreasing. She is concerned about possible employee theft and dishonesty. Explain toKimberly how this loss exposure can be handled under the…

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