Free CPIM Exam Braindumps (page: 13)

If the cost of manufacturing (direct material and direct labor) is 60% of sales and profit is 10% of sales ,what would be the improvement in profit if, through better planning and control, the cost of manufacturing was reduced from 60%of sales to 50%of sales?

Considering the above question how much would sales have to increase in profits?

On the average a firm has 10 weeks of work-in-process and annual cost of goods sold is $15 million. Assuming that, the company works 50 weeks a year. What is the dollar value of the work-in-process?

In the above question, if the work-in-process could be reduced to 7 weeks and the annual cost of carrying inventory was 20% of the inventory value, what would be annual saving?