A grocery chain is interested in exploring the impact effective supply-chain management would have. Suppose that...

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A grocery chain is interested in exploring the impact effective supply-chain management would have. Suppose that for every $1 of sales 4% is profit 50% is spent in the supply chain The remaining 46% is evenly divided between fixed and variable costs. If the chain can save $1 in the supply chain it would take how many dollars of increased sales to have the same increase in profit? Assume that fixed costs are stay fixed so that the portion of increased sales allocated to fixed costs is profit instead (27% profit margin combined now). Create a Contribution Margin Report to determine your answer A grocery chain is interested in exploring the impact effective supply-chain management would have. Suppose that for every $1 of sales 4% is profit 50% is spent in the supply chain The remaining 46% is evenly divided between fixed and variable costs. If the chain can save $1 in the supply chain it would take how many dollars of increased sales to have the same increase in profit? Assume that fixed costs are stay fixed so that the portion of increased sales allocated to fixed costs is profit instead (27% profit margin combined now). Create a Contribution Margin Report to determine your answer

Answer rating: 100% (QA)

SOLUTION To answer this question we need to calculate the current contribution margin of the grocery chain which is the amount of money that is left over after accounting for variable costs and before ... View the full answer