E Question Help Kamal Fatehl production manager of Kennesaw Manufacturing, finds
ID: 342802 • Letter: E
Question
E Question Help Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $39,200 (as shown in the statement below) inadequate for expanding his business. The bank is rategy isting on an improved profit picture prior to approval of a loan for some new equipment. Kamal would like to improve profit line to $49,200 so he can obtai the loan. n the bank's approval for % of sales 100% 65% 10% 11% 14% below Sales Cost of supply chain purchases182,000 Other production costs Fixed costs Profit 280,000 00+ 28,000 30,800 39,200 y chai a) What percentage improvement is needed in a supply chain strategy for profit to improve to $49,200? What is the cost of material with a $49,200 profit? A decrease of 549 % in supply chain costs is required to yield a profit of $49,200 or a new cost of supply chain purchases of S 172000 Enery urres on eforte 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 for profit to improve to $49.200? What must sales be for profit to improve to $49.200? An increase of % in sales is required to yield a proft of 49 200, for a new newlvel fsales of sEnter your response for the percentage increase to one deaima plece and trategy.I enter your response for the new sales as a whole number) x28.200 260 F3.84% your answer in the edit fields and then click Check Answer Final Checi Clear All All parts showing Show Al X weingarten2.swf 2 MacBook AinExplanation / Answer
Solution :
Increase in sales : 14.29%
Increase in sales : $40,000
New level of Sales : $320,000
Case 1 Case 2 Sales 280000 100% 320000 100% Purchase 182000 65% 208000 65% Production 28000 10% 32000 10% Fixed Costs 30800 11% 30800 10% Profit 39200 14% 49200 15%Related Questions
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