Sales Cost of supply chain purchases Other production costs Fixed costs Profit 280,000 182,000 39,200 28,000 30,800 100% 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% in supply-chain costs is required to yield a profit of $40,800, for a new cost of supply chain 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.)

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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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.
% of sales
Sales
280,000
100%
Cost of supply chain purchases
182,000
65%
Other production costs
39,200
14%
10%
Fixed costs
Profit
28,000
30,800
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
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. % of sales Sales 280,000 100% Cost of supply chain purchases 182,000 65% Other production costs 39,200 14% 10% Fixed costs Profit 28,000 30,800 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
不
Sales
Cost of supply chain purchases
Other production costs
Fixed costs
Profit
280,000
182,000
39,200
28,000
30,800
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% in supply-chain costs is required to yield a profit of $40,800, for a new cost of supply chain 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.)
Transcribed Image Text:不 Sales Cost of supply chain purchases Other production costs Fixed costs Profit 280,000 182,000 39,200 28,000 30,800 100% 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% in supply-chain costs is required to yield a profit of $40,800, for a new cost of supply chain 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.)
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