Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $18,200 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 profit line to $28,200 so he can obtain the bank's approval for the loan.

% of Sales
Sales $260,000 100%
Cost of supply chain purchases 187,200 72%
Other production costs 26,000 10%
Fixed Costs 28,600 11%
Profit 18,200 7%
a. What percentage improvement is needed in a supply chain strategy for profit to improve to $28,200? What is the cost of the material with a $28,200 profit?

A decrease of % in supply chaing costs is required to uield a profit of $28,200 for a new cost of supply chaing purchases of $.

b. What percentage improvement is needed in a sales strategy for a profit of $28,200? What must sales be for profit to improve to $28,200$.

An increase of % in sales is required to yiled a profit of $28,200, for a new level of sales of $.