6. Fergus Machine Shop is going through some difficult times. The managers are concemed that the business is beginning to show signs of weakness. It is important for the managers to make decisions for 2021 that could help restore the company's ability to earn the best Margin an Sales. The Industry Standard is 7%. The following are some key accounts from the estimated Income Statement for 2020: Sales $2,500,000 COGS $1,600,000 Gross Margin $900.000 4 Salanes $600,000 Admin Expenses $135,000 Depreciation S125,000 Total Op Expenses S860.000 Operating Margin $40,000 a What is their Margin on Sales? Show your calculation. b. If they could increase their revenues by 4%, would they achieve the industry standard? Show your calculation O . (9 F3 FB F9 F10 FIL 512 % A ? & * Emphasis T Heading 1 Heading 2 1 Heading 3 T Heading 4 Create and Adobe Select Editing Paragraph F Ado Salaries $600,000 Admin Expenses $135.000 Depreciation $125,000 Total OpExpenses 5860,000 Operating Margin $40,000 1. What is their Margin on Sales? Show your calculation. b. If they could increase their revenues by 4%, would they achieve the industry standard? Show your calculation c. What would be their Margin on Sales if they increase their revenues by 4% and reduce salaries by S100,000? Show your calculation o Ad 8 FO fo F11 FAZ