Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $25,000 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 25 000 Ina 1 (154.33 KiB) Viewed 23 times

Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $25,000 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 $30,000 so he can obtain the bank's approval for the loan. Current Situation Sales Cost of material Production costs Fixed cost Profit $100,000 $45,000 (45%) $15,000 (15%) $15,000 (15%) $25,000 (25%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $30,000? What is the cost of material with a $30,000 profit? A decrease of 11.1 % in material (supply-chain) costs is required to yield a profit of $30,000, for a new material cost of $ 40000 . (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole number.) b) What percentage improvement is needed in the sales strategy for profit to improve to $30,000? What must sales be for profit to improve to $30,000? An increase of % in sales is required to yield a profit of $30,000, 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.)