Question: Please provide as much detail as possible. both a) and b) must be solved. ** 11.3 Kamal Fatehl, production manager of Kennesaw Manufacturing, finds his

Please provide as much detail as possible. both

Please provide as much detail as possible. both a) and b) must be solved.

** 11.3 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. % OF SALES Sales 100% 70% Cost of supply chain purchases Other production costs Fixed costs $250,000 175,000 30,000 30,000 15,000 12% 12% Profit 6% 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? (Hint: See Example 1.) a

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