Hau Lee Furniture, Inc., spends 55% of its sales dollars in the supply chain and finds its current profit of $25,000 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 $30,000 so he can obtain the bank's approval for the loan. Sales Cost of material Production costs Fixed cost Profit Current Situation $100,000 $55,000 (55%) $15,000 (15%) $5,000 (5%) $25,000 (25%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $30,000? What is the cost of material with a $30,000 profit? A decrease of % in material (supply-chain) costs is required to yield a profit of $30,000, 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.) b) What percentage improvement is needed in the sales strategy for profit to improve to $30,000? What must sales be for profit to improve to $30,000?

Hau Lee Furniture, Inc., spends 55% of its sales dollars in the supply chain and finds its current profit of $25,000 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 $30,000 so he can obtain the bank's approval for the loan. Sales Cost of material Production costs Fixed cost Profit Current Situation $100,000 $55,000 (55%) $15,000 (15%) $5,000 (5%) $25,000 (25%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $30,000? What is the cost of material with a $30,000 profit? A decrease of % in material (supply-chain) costs is required to yield a profit of $30,000, 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.) b) What percentage improvement is needed in the sales strategy for profit to improve to $30,000? What must sales be for profit to improve to $30,000?

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter6: Statistical Inference

Section: Chapter Questions

Problem 29P: Carpetland salespersons average 8,000 per week in sales. Steve Contois, the firms vice president,...

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Carpetland salespersons average 8,000 per week in sales. Steve Contois, the firms vice president, proposes a compensation plan with new selling incentives. Steve hopes that the results of a trial selling period will enable him to conclude that the compensation plan increases the average sales per salesperson. a. Develop the appropriate null and alternative hypotheses. b. What is the Type I error in this situation? What are the consequences of making this error? c. What is the Type II error in this situation? What are the consequences of making this error?
Kamal Fatehl, production manager of Kennesaw Manufacturing, finds his profit at $15,000 (as shown in the state-ment below)—inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a loanfor some new equipment. Kamal would like to improve the profitline to $25,000 so he can obtain the bank’s approval for the loan.% OF SALESSales $250,000 100%Cost of supply chain purchases 175,000 70%Other production costs 30,000 12%Fixed costs 30,000 12%Profi t 15,000 6%a) What percentage improvement is needed in a supply chainstrategy for profit to improve to $25,000? What is the cost ofmaterial with a $25,000 profit?b) What percentage improvement is needed in a sales strategy forprofit to improve to $25,000? What must sales be for profit toimprove to $25,000?
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