Please do not give solution in image format thanku Hau Lee Furniture, Inc., spends 45% of its sales dollars in the supply chain and finds its current profit of $35,000 inadequate. The bank is insisting on an improvedprofit 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 theloanCurrent Situation$100,000$45,000 (45%)$15,000 (15%)$5,000 (5%)$35,000 (35%)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 % in material (supply-chain) costs is required to yield a profit of $40,000, for a new material cost of $ (Enter your response for the percentagedecrease to one decimal place and enter your response for the new material cost as a whole number)SalesCost of materialProduction costsFixed costProfit

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Answered: Hau Lee Furniture, Inc., spends 45% of…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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