EP PRIN.OF OPERATIONS MGMT.-MYOMLAB
10th Edition
ISBN: 9780134183848
Author: HEIZER
Publisher: PEARSON CO
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Chapter 11, Problem 2P
Hau Lee Furniture, Inc., described in Example 1 of this chapter, finds its current profit of $10,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to $25,000 so he can obtain the bank’s approval for the loan.
a) What percentage improvement is needed in the supply chain strategy for profit to improve to $25,000? What is the cost of material with a $25,000 profit?
b) What percentage improvement is needed in the sales strategy for profit to improve to $25,000? What must sales be for profit to improve to $25,000?
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Students have asked these similar questions
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
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260,000
169,000
36,400
26,000
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% of sales
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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
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10%
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22,400
8%
Part 2
a) What percentage…
Hau Lee Furniture, Inc., spends 60% of its sales dollars in the supply chain and finds its current profit of $10,000 inadequate. The bank is insisting on an improved profit picture prior to approval
of a loan for some new equipment. Hau would like to improve the profit line to $25,000 so he can obtain the bank's approval for the loan.
Current Situation
Sales
$100,000
S60,000 (60%)
$20,000 (20%)
$10,000 (10%)
$10,000 (10%)
Cost of material
Production costs
Fixed cost
Profit
a) What percentage improvement is needed in the supply chain strategy for profit to improve to $25,000? What is the cost of material with a $25,000 profit?
A 25 % decrease in material (supply-chain) costs is required to yield a profit of $25,000, for a new material cost of $ 45000 . (Enter your responses as whole numbers.)
b) What percentage improvement is needed in the sales strategy for profit to improve to $25,000? What must sales be for profit to improve to $25,000?
A % increase in sales is required to yield a…
Chapter 11 Solutions
EP PRIN.OF OPERATIONS MGMT.-MYOMLAB
Ch. 11.S - Prob. 1DQCh. 11.S - Prob. 2DQCh. 11.S - Prob. 3DQCh. 11.S - Prob. 4DQCh. 11.S - Prob. 5DQCh. 11.S - Prob. 6DQCh. 11.S - Prob. 7DQCh. 11.S - Prob. 8DQCh. 11.S - Prob. 9DQCh. 11.S - Prob. 10DQ
Ch. 11.S - Prob. 1PCh. 11.S - Prob. 2PCh. 11.S - Prob. 3PCh. 11.S - Prob. 4PCh. 11.S - Prob. 5PCh. 11.S - Prob. 6PCh. 11.S - Prob. 7PCh. 11.S - Prob. 8PCh. 11.S - Prob. 9PCh. 11.S - Prob. 10PCh. 11.S - Prob. 11PCh. 11.S - Prob. 12PCh. 11.S - Your options for shipping 100,000 of machine parts...Ch. 11.S - If you have a third option for the data in Problem...Ch. 11.S - Prob. 16PCh. 11.S - Prob. 17PCh. 11.S - Prob. 18PCh. 11.S - Prob. 19PCh. 11.S - Prob. 20PCh. 11 - Prob. 1EDCh. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - Prob. 3DQCh. 11 - Prob. 4DQCh. 11 - Prob. 5DQCh. 11 - Prob. 6DQCh. 11 - Prob. 7DQCh. 11 - Prob. 8DQCh. 11 - What is CPFR?Ch. 11 - Prob. 10DQCh. 11 - Prob. 11DQCh. 11 - Prob. 12DQCh. 11 - Prob. 13DQCh. 11 - Prob. 14DQCh. 11 - Prob. 15DQCh. 11 - Prob. 16DQCh. 11 - Prob. 17DQCh. 11 - Prob. 1PCh. 11 - Hau Lee Furniture, Inc., described in Example 1 of...Ch. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 1CSCh. 11 - Prob. 2CSCh. 11 - Prob. 3CSCh. 11 - Prob. 4CSCh. 11 - Prob. 1.1VCCh. 11 - Prob. 1.2VCCh. 11 - Prob. 1.3VCCh. 11 - Prob. 2.1VCCh. 11 - Prob. 2.2VCCh. 11 - Prob. 2.3VCCh. 11 - Prob. 2.4VC
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