Homework: Module 3A (Chapter 11) Homework Save Score: 0 of 12 pts 1 of 9 (0 complete) HW Score: 0%, 0 of 40 pts Problem 11.2 Question Help Hau Lee Furniture, Inc, spends 55% of its sales dollars in the supply chain and finds its current profit of $15,000 inadequate. The bank is indisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to $20,000 so he can obtain the bank's approval for the loan Current Situation Sales $100,000 Cost of material $55,000 (55%) Production costs $15,000 (15%) Fixed cost $15,000 (15%) Profit $15,000 (15%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $20,000? What is the cost of material with a $20,000 profit? A decrease of % in material (supply chain) costs is required to yold a profit of $20,000, for a new material cost of (Enter your response for the percentage decrease to ono decimal place and enter your response for the new motorial cost as a whole number) b) What percentage improvement is needed in the sales strategy for profit to improve to $29,000? What must sales be for profit to improve to $29,000? A sales strategy is a plan by a business or individual on how to go about selling products and services and increasing profits. Note that the percent of sales for the cost of materials (50%) and for the production cost (15%) will be the same as in the current situation. Therefore, -% (Enter your response as a whole number) Percent of Sales for Fixed cost + Percent of Sales for Profit Chery ang 2