Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $8,000 (as shown in the statement 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 profit line to $38,000 so he can obtain the approval for the loan. % of sales Sales 280,000 10%

Cost of supply chain purchases 182,000 65%

Other production costs 39,200 14%

Fixed costs 30,800 11%

Profit 28,000 10%

a) What percentage improvement is needed in a supply chain strategy for profit to improve to 38,000 What is the cost of material with a $38,000 profit A decrease of nothing % in supply-chain costs is required to yield a profit of $38,000, for a new cost of supply chain purchases of $nothing. (Enter your response for the percentage decrease to one decimal place and enter your response for the new supply chain cost as a whole number.)

b) What percentage improvement is needed in a sales strategy for profit to improve to $38,000 What must sales be for profit to improve to $38,000. An increase of nothing% in sales is required to yield a profit of $38,000, for a new new level of sales of $nothing. (Enter your response for the percentage increase to one decimal place and enter your response for the new sales as a whole number.)