# Question

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 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.
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a) What percentage improvement is needed in a supply chain strategy for profit to improve to \$ 25,000? What is the cost of material with a \$ 25,000 profit?
b) What percentage improvement is needed in a sales strategy for profit to improve to \$ 25,000? What must sales be for profit to improve to \$25,000?

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