The question below has two parts: A and B. A is listed on the photo below. B is:
ID: 457525 • Letter: T
Question
The question below has two parts: A and B.
A is listed on the photo below.
B is: What percentage improvement is needed in the sales strategy for profit to improve to $12,000? What must sales be for profit to improve to $12,000?
THANK YOU!
|44d@@G' D>> Problem 11.3 Exercise Score: 0 of 3 pts Assignment Score: 65% (13 of 20 pts) 13 of 15 complete Hau Lee Fu iture nc spends 55% of its sales dollars in the supply chain and finds its current profit of S 7 000 nadequate. The bank 1s insisting on an improved profit picture pnor to approval of a loan for some new equipment. Hau would like to improve the profit line to $12,000 so he can obtain the bank's approval for the loan. Sales Cost of material Production costs Fixed cost Profit Current Situation S140,000 $77,000 (55%) $35,000 (25%) $21,000 (15%) $7,000 (5%) a) What percentage improvement is needed in the supply chain strateyfor profit to improve to $12,000? What is the cost of material with a $12,000 profit? or the percenta crease to one a cv a place an enter your response or the A decrease of % n material supply chain costs is required to yield a profit of $12.000 for a new material cost of S new material cost as a whole number) ntervour response eExplanation / Answer
At present the Profit is $7,000 and target is to have Profit of $12,000. This target needs to be done by improving the supply chain which is stated as 55% of its sales dollors.
The decrease of 6.5% in material (supply-chain) costs is required to yield a profit of $12,000, for a new material cost of $72,000. This new material cost is approximately 51.4% (reduced from earlier 55%) of dollors in sales, therefore % reduction in terms of dollor sales is 3.6 approx.
Current Target Change %change Sales 140000 140000 0 --- Cost of material 77000 72000 5000 6.5 Production costs 35000 35000 0 Fixed cost 21000 21000 0 Total cost 133000 128000 5000 Profit 7000 12000 -5000Related Questions
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