Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $13,000 (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 $23,000 so he can obtain the bank's approval for the loan. % of sales Sales Cost of supply chain purchases 260,000 187,200 28,600 31,200 13,000 100% 72% Other production costs 11% Fixed costs 12% Profit 5% a) What percentage improvement is needed in a supply chain strategy for profit to improve to $23,000? What is the cost of material with a $23,000 profit? A decrease of % in supply-chain costs is required to yield a profit of $23,000, for a new cost of supply chain purchases of S. (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 for profit to improve to $23,000? What must sales be for profit to improve to $23,000? An increase of % in sales is required to yield a profit of $23,000, for a new new level of sales of S. (Enter your response for the percentage increase to one decimal place and enter your response for the new sales as a whole number.)
Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $13,000 (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 $23,000 so he can obtain the bank's approval for the loan. % of sales Sales Cost of supply chain purchases 260,000 187,200 28,600 31,200 13,000 100% 72% Other production costs 11% Fixed costs 12% Profit 5% a) What percentage improvement is needed in a supply chain strategy for profit to improve to $23,000? What is the cost of material with a $23,000 profit? A decrease of % in supply-chain costs is required to yield a profit of $23,000, for a new cost of supply chain purchases of S. (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 for profit to improve to $23,000? What must sales be for profit to improve to $23,000? An increase of % in sales is required to yield a profit of $23,000, for a new new level of sales of S. (Enter your response for the percentage increase to one decimal place and enter your response for the new sales as a whole number.)
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Can you assit me with this problem 12 by showing me the process step by step. I prefer it not be in the form of an excel sheet because it is hard to follow along. Thank you kindly
Transcribed Image Text:Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $13,000 (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 $23,000 so he can obtain the bank's approval for the loan.
% of sales
Sales
260,000
100%
Cost of supply chain purchases
Other production costs
187,200
72%
28,600
11%
Fixed costs
31,200
12%
Profit
13,000
5%
a) What percentage improvement is needed in a supply chain strategy for profit to improve to $23,000? What is the cost of material with a $23,000 profit?
A decrease of % in supply-chain costs is required to yield a profit of $23,000, for a new cost of supply chain 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 for profit to improve to $23,000? What must sales be for profit to improve to $23,000?
An increase of % in sales is required to yield a profit of $23,000, for a new new level of sales of $. (Enter your response for the percentage increase to one decimal place and enter your response for the new sales as a
whole number.)
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