11.3 Han Lee Furniture, Inc, spends 50% of its sales dollars in the supply chain and finds its current profit of $16,000 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 $21,000 so he can obtain the bank Solution to get $25,000 profit, the cost of material should be $20,000.

1. 11.3
Han Lee Furniture, Inc, spends 50% of its sales dollars in the supply chain and finds its current
profit of $16,000 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 $21,000
so he can obtain the bank
Solution
to get $25,000 profit, the cost of material should be $20,000