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Kevin Fathehl, production manager of Kennesaw Manufacturing, finds his profit inadequate for expanding his business. The
Posted: Sun Jun 05, 2022 10:28 am
by answerhappygod
- Kevin Fathehl Production Manager Of Kennesaw Manufacturing Finds His Profit Inadequate For Expanding His Business The 1 (28.2 KiB) Viewed 52 times
Kevin Fathehl, production manager of Kennesaw Manufacturing, finds his profit inadequate for expanding his business. The bank is insisting on an improved profit picture prior to the approval of a loan for some new equipment. Kevin would like to improve the profit line to $25,000 so he can obtain the bank's approval for the loan. Nof Current Sales Sales $300,000 216,000 72% Cost of material purchased Production costs 30,000 10% Fixed costs 39,000 13% Profit $15,000 5% Using a sales strategy for the new profit goal, what is the new cost of materials purchases and what is the percentage of change of that cost? O $256,000; +15.62% $256,000; +18.52% O $216,000; 0% O $371,500; +18.52%