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a) What percentage improvement is needed in the supply chain strategy for profit to improve to $40,000? What is the cost of material with a $40,000 profit?
A decrease of ___% in material (supply-chain) costs is required to yield a profit of $40,000 for a new material cost of$____.
B) What percentage improvement is needed in the sales strategy for profit to improve to $40,000? What must sales be for profit to improve to $40,000?
An increase of __% in sales is required to yield a profit of $40,000, for a new level of sales of $___.
Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $35,000 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 $40,000 so he can obtain the bank's approval for the loan. Current Situation Sales $140,000 $63,000 (45%) $21,000 (15%) $21,000 (15%) $35.000 (25%) Cost of material Production costs Fixed cost Profit
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