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Business, 16.04.2020 03:55 orcawave9408

Hau Lee Furniture, Inc., spends 55% of its sales dollars in the supply chain and finds its current profit of $28 comma 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 comma 000 so he can obtain the bank's approval for the loan. Current Situation Sales $140 comma 000 Cost of material $77 comma 000 (55%) Production costs $28 comma 000 (20%) Fixed cost $7 comma 000 (5%) Profit $28 comma 000 (20%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $33 comma 000? What is the cost of material with a $33 comma 000 profit? A decrease of nothing% in material (supply-chain) costs is required to yield a profit of $33 comma 000, for a new material cost of $ nothing. (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole number.) Enter your answer in the edit fields and then click Check Answer.

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