Margaret Williams, production manager at Williams Manufacturing,
finds her profits at $15,000 inadequate for her business. The bank
is insisting on an improved profit picture prior to an approval of
a loan for some new equipment. Margaret would like to improve the
profit line to $25,000 so she can obtain the approval for the
loan.
Given the information below and using a Sales Strategy, what
percentage change of sales would need to be increased to achieve a
$25,000 profit?
Homework Answers
Fixed costs foe not change with change in volume.
Desired Profit = $25,000
Fixed costs = $30,000
Contribution Margin = $55,000
Desired Sales = 55,000/(100-70-12)%
= $305,555.56
Hence, % increase required = (305,555.56-250,000)/250,000
= 22.22%
Hence, the answer is D
Add Answer to:
Margaret Williams, production manager at Williams Manufacturing,
finds her profits at $15,000 inadequate for her business....
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11.3 Kamal Fatehl, production manager of Kennesaw Manufacturing, finds his profit at $15,000 (as shown in the statement below)-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 the profit line to $25,000 so he can obtain the bank's approval for the loan. Sales: $250,000 -- 100% of sales cost of supply chain purchases: 175,000 -- 70% of sales other production...
Please answer B) 2x Problem 11.2 Question Help Hau Lee Furniture, Inc., spends 55% of its...
Please answer B)
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Hau Lee Furniture, Inc., spends 55% of its sales dollars in the supply chain and finds...
Hau Lee Furniture, Inc., spends 55% of its sales dollars in
the supply chain and finds its current profit of $5,000 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 $10,000 so he can obtain the bank's
approval for the loan.
Current Situation
Sales
$100,000
Cost of Material
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Production Costs
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Fixed Costs
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Profit
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Hau
Lee Furniture, Inc., spends
50%
of its sales dollars in the supply chain and finds its
current profit of $28,000 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 $33,000 so he can obtain
the bank's approval for the loan
a) What percentage improvement is needed in the supply chain strategy for profit to improve to $33,000? What is...
a) What percentage improvement is needed in the supply chain strategy for profit to improve to...
a) What percentage improvement is needed in the supply chain
strategy for profit to improve to $40,000? What is the cost of
material with a $40,000 profit?
A decrease of ___% in material (supply-chain) costs is required
to yield a profit of $40,000 for a new material cost of
$____.
B) What percentage improvement is needed in the sales strategy
for profit to improve to $40,000? What must sales be for profit to
improve to $40,000?
An increase of __%...
QUESTION B = ? Hau Lee Furniture, Inc., spends 50% of its sales dollars in the...
QUESTION B = ?
Hau Lee Furniture, Inc., spends 50% of its sales dollars in the supply chain and finds its current profit of $28,000 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 $33,000 so he can obtain the bank's approval for the loan. Sales Cost of material Production costs Fixed cost Profit Current Situation $140,000 $70,000 (50%) $28,000...
Question also asks: PLEASE ANSWER b) What percentage improvement is needed in the sales strategy for...
Question also asks: PLEASE
ANSWER
b) What percentage improvement is needed in the sales
strategy for profit to improve to $20,000? What must sales be
for profit to improve to 20,000?
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Please answer B)
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Hau Lee Furniture, Inc., spends 55% of its sales dollars in
the supply chain and finds its current profit of $5,000 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 $10,000 so he can obtain the bank's
approval for the loan.
Current Situation
Sales
$100,000
Cost of Material
$55,000 (55%)
Production Costs
$25,000 (25%)
Fixed Costs
$15,000 (15%)
Profit
%5,000...
Hau
Lee Furniture, Inc., spends
50%
of its sales dollars in the supply chain and finds its
current profit of $28,000 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 $33,000 so he can obtain
the bank's approval for the loan
a) What percentage improvement is needed in the supply chain strategy for profit to improve to $33,000? What is...
a) What percentage improvement is needed in the supply chain
strategy for profit to improve to $40,000? What is the cost of
material with a $40,000 profit?
A decrease of ___% in material (supply-chain) costs is required
to yield a profit of $40,000 for a new material cost of
$____.
B) What percentage improvement is needed in the sales strategy
for profit to improve to $40,000? What must sales be for profit to
improve to $40,000?
An increase of __%...
QUESTION B = ?
Hau Lee Furniture, Inc., spends 50% of its sales dollars in the supply chain and finds its current profit of $28,000 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 $33,000 so he can obtain the bank's approval for the loan. Sales Cost of material Production costs Fixed cost Profit Current Situation $140,000 $70,000 (50%) $28,000...
Question also asks: PLEASE
ANSWER
b) What percentage improvement is needed in the sales
strategy for profit to improve to $20,000? What must sales be
for profit to improve to 20,000?
Hau Lee Furniture, Inc., spends 55% o its sales dollars in the supply chain and finds its current profit of $15.000 equipment. Hau would like to improve the profit line to $20,000 so he can obtain the ban's approval for the loan adequate. The bank is insisting on an...
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