Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $21,000 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 $26,000 so he can obtain the bank's approval for the loan.
Current Situation Sales $140,000 Cost of material $63,000 (45%) Production cost $35,000 (25%) Fixed cost $21,000 (15%) Profit $21,000 (15%)
What percentage improvement is needed in the supply chain strategy for profit to improve to $26,000? What is the cost of material with a $26000 profit?
A decrease of ?% in material (supply-chain) costs is required to yield a profit of $26000, for a new material cost of ? . (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole number.)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
