Kamal Fatehl production manager of Kennesaw Manufacturing finds his profit at $25,200 (as shown in the statement below) 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 $35200 so he can obtain the Bank's approval for the loan.
|% of sales|
|Cost of supply chain purchases||190,400||68%|
|Other production Costs||30,800||11%|
a) What percentage improvement is needed in a supply chain strategy for profit to improve to $35,200?
What is the cost of material with a $35,200 profit?
A decrease of (blank) in supply-chain costs is required to yield a profit of $35,200, for a new cost of supply chain purchases of (blank).
(Enter your response for the percentage decrease to one decimal place and enter your response for the new supply chain cost as a whole? number.)
b) What percentage improvement is needed in a sales strategy for profit to improve to $35,200? What must sales be for profit to improve to $35,200? An increase of (blank) in sales is required to yield a profit of $35,200? for a new level of sales of (blank).
(Enter your response for the percentage increase to one decimal place and enter your response for the new sales as a whole number.
A production manager is a person who is solely responsible for production management in an organization. He is the person who makes sure that the production happens at the available time and keeps an eye on the quality as well. He is the person who also distributes the duties of the workers, properly record all the data related to workers, production timings, raw material used, etc.
Answer and Explanation:
Supply chain cost = 1, 90,400
To increase the profit from 25,200 to 35,200
35,200-25,200 = 10,000
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from Business Management: Help & ReviewChapter 11 / Lesson 8