Look at Example $1$ on p$.445$ of the $13$ th edition of Heizer and Render. This problem follows those calculations closely.

We are over here at XYZ Corporation, and your boss has just told you that the current cost of materials was $$55599,$ and they are considering a supply chain strategy which promises to reduce material costs by $7\%.$ Below is a table giving other relevant information.

All units are given in $USD.

Sales

current

Supply Chain Strategy

Cost of materials

Production costs

$20,000$

$20,000$

Fixed costs

$10,000$

$10,000$

Profit

What is the percentage improvement in profit under the supply chain strategy?

Enter your answer as a number between $0$ and $100.$ For example, if you calculate $12\mathrm{.}34\%$ as youn percentage improvement, make sure to enter $12\mathrm{.}34.$ Do not enter $0\mathrm{.}1234.$