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olya-2409 [2.1K]
3 years ago
10

Hau Lee​ Furniture, Inc., spends 45​% of its sales dollars in the supply chain and finds its current profit of ​$35,000 inadequa

te. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to ​$40,000 so he can obtain the​ bank's approval for the loan. Current Situation Sales ​$140,000 Cost of material ​$63,000 ​(45​%) Production costs ​$35,000 ​(25​%) Fixed cost ​$7,000 ​(5​%) Profit ​$35,000 ​(25​%) ​a) What percentage improvement is needed in the supply chain strategy for profit to improve to ​$40,000​? What is the cost of material with a ​$40,000 ​profit? A decrease of nothing​% in material​ (supply-chain) costs is required to yield a profit of ​$40,000​, for a new material cost of ​$ nothing. ​(Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole​ number.)
Business
1 answer:
murzikaleks [220]3 years ago
3 0

Answer:

a) 7.93%

b) 58,000 dolllars

Explanation:

a) We want to increase the profits by 5,000 thus we divide by our current supply chain cost to know how much do we need to decrease it:

5,000 / 63,000 = 0.0793 = 7.93%

b) material cost if estrategy is success:

original cost less 5,000 cost reduction

63,000 - 5,000 = 58,000

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How do u run a business
mezya [45]

Answer:

Explanation:

To run a business you firstly need investors or shareholders to help or run your business with you. They should have experience as running a business is tricky and can collapse within weeks. You also need large amounts of money to promote nad hire staff etc. You should also have an idea of what you want it to be like and what growth routes it should take. Make sure you have a target market to promote your ideas to. But make sure it is all realistic as silly ideas can be very costly.

5 0
2 years ago
Read 2 more answers
A local county is considering purchasing some dump trucks for the trash pickups. Each truck will cost $55,000 and have an operat
lianna [129]

Answer:

35,972

Explanation:

The equivalent annual cost can be calculated dividing NPV by the annuity factor

In order to find NPV first

                                   Year1    Year2   Year3   Year4  Year5         Total

Operating and

Maintenance              18000 21000  24000  27000 30000          -

Discount factor(10%)  0.909   0.826   0.751   0.683   0.620           -

Discounted CFs          16362   17346  18024    18411   18600      88,713

Salvage                                                                          12000  

Discount factor(10%)                                                     0.620

Discounted salvage                                                      7440        (7440)

Inital Cost                   (55,000)                                                      (55,000)

NPV                                                                                                136,333

Calculation for EAC

NPV = 136,333

Annuity factor for 5 years = 3.790

Equivalent annual cost = NPV /Annuity factor

Equivalent annual cost = 136,333/3.790

Equivalent annual cost = 35,972

8 0
3 years ago
Without creating a separate business organization, Roy starts up Sole Savers, a new, pre-owned auto sales enterprise. Roy is
s2008m [1.1K]

Roy is a sole trader if he is not setting up a company instead starts a business.

<h3>What is a Business?</h3>

A business is the process of selling goods or services and earning revenue and profits through it, the business generates revenue which is deducted by the expenses incurred by the business. The business ensures the strategy to have a balance between these expenses and revenue so that there is some residue profit.

The sole trader is the business where the owner of the business is highly involved in day to day running of the business taking all the strategic decisions and responsible for all the debts of the business.

On the other hand a limited liability company is a business in which the owner of the company can be involved in day to day running of the operations but is not liable personally for the debts.

Learn more about Trader at brainly.com/question/27235892

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5 0
2 years ago
Zoe Corporation has the following information for the month of March: cost of direct materials used in product $15,401,direct la
bija089 [108]

Answers:

Calculation of cost of goods manufactured:

Particulars                                                      Amount(in $)

Cost of direct material                                    $15,401

Add: Direct labour                                           $24,583

Add: Factory overhead                                   $35,335

Add: Work In process inventory, March 1      $20,021

Less: Work in process inventory, March 31   <u>$20,681</u>

Cost of goods manufactured                        <u>$74,659</u>

Calculation of Cost of goods sold:

Particulars                                                      Amount(in $)

Cost of goods manufactured                        $74,659

Add: Finished goods inventory, March 1      $24,889

Less: Finished goods inventory, March 31   <u>$27,311   </u>

Cost of goods sold                                        <u>$72,237</u>

7 0
3 years ago
The inclusion of all product and period costs necessary for making and marketing a product or service is a distinguishing featur
Neporo4naja [7]

Answer:

The correct answer is the option B: market price.

Explanation:

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4 0
3 years ago
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