Margaret Williams, production manager at Williams Manufacturing, finds her profits at $15,000 inadequate for her business. The b
ank is insisting on an improved profit picture prior to an approval of a loan for some new equipment. Margaret would like to improve the profit line to $25,000 so she can obtain the approval for the loan. Given the information below and using a Supply Chain Strategy, what percentage change of their Cost of Supply Chain Purchases would need to be reduced to achieve a $25,000 profit
1 answer:
Answer:
22.22%
Explanation:
The calculation of percentage in sales is shown below:-
Increase in profit required = $25,000 - $15,000
= $10,000
To achieve a profit $10,000, the required sales increases
= $10000 ÷ 18%
= $55,555.55
Percentage increase in sale = Required sales ÷ Sales of current situation
= $55,555.55 ÷ $250,000
= 22.22%
So, for computing the percentage increase in sales we simply applied the above formula.
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Answer:
Current assets:
Amount = 2014 value - 2013 value
= $203,600 - $254,000
= -($50,400) (Negative)
percentage changes =
=
= (19.84)%
Plant assets:
Amount = 2014 value - 2013 value
= $1,397,000 - $831,700
= $565,300
percentage changes =
=
= 67.96%
Total assets:
Amount = 2014 value - 2013 value
= $1,600,600 - $1,085,700
= $514,900
percentage changes =
=
= 47.42%