A decrease of enter your response here% in supply-chain costs is required to yield a profit of $32,400, for a new cost of supply chain purchases of $enter your response here.
A decrease of enter your response here% in supply-chain costs is required to yield a profit of $32,400, for a new cost of supply chain purchases of $enter your response here.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 46P
Related questions
Question
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 improvement is needed in a supply chain strategy for profit to improve to
$32,400?
What is the cost of material with a
$32,400
profit?A decrease of
enter your response here%
in supply-chain costs is required to yield a profit of
$32,400,
for a new cost of supply chain purchases of
$enter your response here.
(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.)Part 3
b) What percentage improvement is needed in a sales strategy for profit to improve to
$32,400?
What must sales be for profit to improve to
$32,400?
An increase of
enter your response here%
in sales is required to yield a profit of
$32,400,
for a new new level of sales of
$enter your response here.
(Enter your response for the percentage increase to one decimal place and enter your response for the new sales as a whole number.)Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning