Margaret Williams, production manager at Williams Manufacturing, finds her profits at $15,000 inadequate for her business. The b
ank is insisting on an improved profit picture prior to an approval of a loan for some new equipment. Margaret would like to improve the profit line to $25,000 so she can obtain the approval for the loan. Given the information below and using a Supply Chain Strategy, what percentage change of their Cost of Supply Chain Purchases would need to be reduced to achieve a $25,000 profit
1 answer:
Answer:
22.22%
Explanation:
The calculation of percentage in sales is shown below:-
Increase in profit required = $25,000 - $15,000
= $10,000
To achieve a profit $10,000, the required sales increases
= $10000 ÷ 18%
= $55,555.55
Percentage increase in sale = Required sales ÷ Sales of current situation
= $55,555.55 ÷ $250,000
= 22.22%
So, for computing the percentage increase in sales we simply applied the above formula.
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Answer:
The manufacturer should announce a guaranteed mileage of 44528 miles
Explanation:
Problems of normally distributed samples are solved using the z-score formula.
In a set with mean and standard deviation
, the zscore of a measure X is given by:
The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.
In this problem, we have that:
What guaranteed mileage should the manufacturer announce
Only until the 5th percentile will have to be replaced, which is the value of X when Z has a pvalue of 0.05. So it is X when Z = -1.645.
The manufacturer should announce a guaranteed mileage of 44528 miles