London School of Business and Finance - MANAGEMENT MBA 1)Hau Lee Furniture, Inc

Management Mar 25, 2021

London School of Business and Finance - MANAGEMENT MBA

1)Hau Lee Furniture, Inc., described in Example 1 of this chapter, finds its current profit of $10,000 inadequate. 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 $25,000 so he can obtain the bank's approval for the loan. a) What percentage improvement is needed in the 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 the sales strategy for profit to improve to $25,000? What must sales be for profit! to improve to $25,000?

PERCENTAGE IMPROVEMENT REQUIRED IN SALES STRATEGY = 75%

SALES FOR PROFIT TO IMPROVE TO $25,000 WILL BE $175,000

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