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Logistics , marketing, business and finance homework help
Ron Mesia, Circuit City Supply Chain Manager finds his profit at $15,000 as shows below, he considers that it is inadequate for expanding his business.
Bank of America is insisting on an improved profit picture prior to approval of a loan for some new equipment. Ron would like to improve the profit line to $25,000 so he can obtain the bank’s approval for the loan.
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What percentage improvement is needed in a Cost of Material Strategy for the profit to improve to $25,000? Sales, Other Production Cost, and Fixed Cost will remain the same.
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What percentage improvement is needed in Sales for the profit to improve to $25,000? Cost of Material, Other Production Cost, and Fixed Cost will remain the same.
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I need the formulas and ho you did the calculation
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