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.)
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.