Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $18,200 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 $28,200 so he can obtain the bank's approval for the loan.
|
| % of Sales |
| Sales |
$260,000 |
100% |
| Cost of supply chain purchases |
187,200 |
72% |
| Other production costs |
26,000 |
10% |
| Fixed Costs |
28,600 |
11% |
| Profit |
18,200 |
7% |
What percentage improvement is needed in a supply chain strategy for profit to improve to $28,200? What is the cost of the material with a $28,200 profit?
A decrease of ____% in supply chaing costs is required to uield a profit of $28,200 for a new cost of supply chaing purchases of $______.