Question-1

a- Looking at Table 2, what should the US$ target be to achieve the same Net earnings? In addition, please be sure to detail how you can achieve the goal of maintaining the same Net earnings.

b-Now that you have an idea of what the target is, what possible gaps in the company's supply chain do you see that you would consider exploiting. In your answer, please be thorough about all the issues you see with the company's supply chain strategy as it stands right now

Table 2: Medical Technologies Corporate Income Statement ivote: all numbers in pminns uniess otnerwise noted Note on Income Taxes: The effective income tax rate on earnings was 17.0%,23.9% and 20.2% in 2014, 2013 and 2012 , respectively. The effective income tax rate for 2014 includes income tax benefits relating to favorable audit resolutions in multiple jurisdictions. The effective income tax rate for 2013 includes the net impact of effective settlement of all tax matters through 2005 relating to two foreign subsidiaries, and adjustment of the estimate of foreign tax credits to the amount shown on the tax return as filed. The effective income tax rate for 2011 includes the net impact of the settlements with the IRS as described above. The American Taxpayer Relief Act of 2012 (the Act) was signed on January 2, 2013. The Act provided numerous tax provisions for corporations including an extension of the research tax credit and an extension of certain provisions for companies with significant international operations. The provisions originally expired at December 31, 2011 but were retroactively extended through December 31, 2013. In 2013 we recorded tax benefits of $13 related to the 2012 research tax credit and other provision of the Act