What percentage improvement is needed in sales strategy

Assignment Help Operation Management
Reference no: EM131146653

Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $31,200 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 $41,200 so he can obtain the bank's approval for the loan

% of Sales

Sales $240,000 100%

Cost of supply chain purchases 156,000 65%

Other production costs 26,400 11%

Fixed Costs 26,400 11%

Profit 31,200 13%

a. What percentage improvement is needed in a supply chain strategy for profit to improve to $41,200? What is the cost of the material with a $41,200 profit? A decrease of ____% in supply chaing costs is required to uield a profit of $41,200 for a new cost of supply chaing purchases of $______.

b. What percentage improvement is needed in a sales strategy for a profit of $41,200? What must sales be for profit to improve to $41,200$. An increase of ____% in sales is required to yiled a profit of $41,200, for a new level of sales of $______.

Reference no: EM131146653

Chris ellis commercial laundry has a workstation

A work cell at Chris Ellis Commercial Laundry has a workstation with two machines, and each unit produced at the station needs to be processed by both of the machines. (The sa

Review the inquirer to determine current strategy

Review the Inquirer to determine Baldwin's current strategy. How will they seek a competitive advantage? From the following list, select the top five sources of competitive ad

What is the total annual inventory cost of your policy

Annual demand for an item is 40,000 units. The holding cost rate is 30% of the item cost. Ordering costs are $60/ order. What is the optimal order quantity? What is the total

Case for critical analysis-facilitate the implementation

Based on the information available in the case, discuss what you think are the reasons for people’s resistance to the MRP implementation. Discuss if there is any value to the

Job between production of batches of heating elements

A company manufactures hair dryers. It buys some of the components, but it makes the heating element, which it can produce at the rate of 853 per day. Hair dryers are assemble

Market-driven models for pricing-cost-driven pricing models

Monczka discusses both market-driven models for pricing (price volume model, market-share, market skimming, revenue pricing, promotional pricing, competition pricing) and cost

Similarities in civil-criminal law and mosaic law of bible

Discuss the similarities between the U.S. civil and criminal law and the Mosaic Law of the Bible, which is found mainly in Exodus, Levicticus, Deuteronomy, and Numbers. Many U

What are activities that are carried out at a national union

What are activities that are carried out at a national union convention, and why does this type of venue allow for the Democratic process to have an opportunity of working?


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd