What percentage of improvement in the Supply Chain Strategy is required for prof

Question

What percentage of improvement in the Supply Chain Strategy is required for profits to improve to $25,000 (in percentage)? (Hint: First find the needed cost of materials and the calculates the percentage improvement) SUPPLY CHAIN STRATEGY 2 $100,000 CURRENT SITUATION SUPPLY CHAIN Sales Cost of materials Production costs Fixed costs Profit % Improvement $100,000 $60,000 $20,000 $10,000 $10,000 0% STRATEGY $100,000 $55,000 $20,000 $10,000 $15,000 (60,000-50,000)/60,000)- $20,000 $10,000 $25,000 8.3%

Explanation / Answer

What percentage of improvement in the Supply Chain Strategy is required for profits to improve to $25,000 (in percentage)? (Hint: First find the needed cost of materials and the calculates the percentage improvement) SUPPLY CHAIN STRATEGY 2 $100,000 CURRENT SITUATION SUPPLY CHAIN Sales Cost of materials Production costs Fixed costs Profit % Improvement $100,000 $60,000 $20,000 $10,000 $10,000 0% STRATEGY $100,000 $55,000 $20,000 $10,000 $15,000 (60,000-50,000)/60,000)- $20,000 $10,000 $25,000 8.3%

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