Explain bank is insisting on an improved profit picture, Operation Management

Assignment Help:

Company A finds profit at $15,000 inadequate for expanding business. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Company A would like to improve the profit line to $25,000 to obtain the bank's loan approval.

1. What percentage improvement is needed in a supply chain strategy for profit to improve to $25,000? What is the cost of material with $25,000 profit?
2. What percentage improvement is needed in a sales strategy for profit to improve to $25,000? What must sales be for profit to improve to $25,000?
Sales = $250,000 (100% of sales); Cost of supply chain purchases = $175,000 (70% of sales); other production costs = $30,000 (12$ of sales); Fixed Costs = $30,000 (12% of sales); Profit = $15,000 (6% of sales)


Related Discussions:- Explain bank is insisting on an improved profit picture

Small organizations or large organizations differ in design, How do small o...

How do small organizations and large organizations differ in design?

Brainstorming - improving productivity, Brainstorming - Improving Productiv...

Brainstorming - Improving Productivity Brainstorming is a well-known ideas-generating technique aimed at producing new ideas before evaluation, which tends to shut down many

Functions of product development team, How is anticipating a material requi...

How is anticipating a material requirement or need through purchasing's involvement on a new-product development team different from reacting to a purchase need?

Explain what is the utilization of the machine, Suppose jobs arrive at a si...

Suppose jobs arrive at a single? Machine workstation at a rate of 20 per hour and the average process time is 2.5 minutes. a. What is the utilization of the machine? b. Sup

Explain companies choose not to tie resources to their job, Some companies ...

Some companies choose not to tie resources to their projects. In what ways does this benefit a project? In what ways does this hinder a project?

Explain the nature and components industries., Describe the nature and comp...

Describe the nature and components of, and the issues currently facing, executive compensation in various U.S. industries.

Valuate the production quantity, Using the data, suppose the manufacturer h...

Using the data, suppose the manufacturer has an inflated demand forecast as follows: Quantity Probability 2,200 5% 2,300 6% 2,400 10% 2,500 17% 2,600 30% 2,700

Desicion making chapter 1, analyze the decision tree in figure A.8 what is ...

analyze the decision tree in figure A.8 what is the expected payoff for the best alternative? first be sure to infer the missing probabilities

Explain concerns for product design in a dfma program, Name and briefly des...

Name and briefly describe the four primary concerns for product design in a DFMA program.

Write Your Message!

Captcha
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