Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $35,000 ina

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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 Cost of
material $63,000 (45%) Production costs $21,000 (15%) Fixed cost
$21,000 (15%) Profit $35,000 (25%)
Part 2 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 enter your
response here% in material (supply-chain) costs is required to
yield a profit of $40,000, for a new material cost of $ enter your
response here. (Enter your response for the percentage decrease to
one decimal place and enter your response for the new material cost
as a whole number.)