Question
A company is able to implement one of two strategies regarding a particular product: hire a marketing firm to increase sales 16% or assign a
A company is able to implement one of two strategies regarding a particular product: hire a marketing firm to increase sales 16% or assign a product procurement manager who can reduce material cost for the product by 9%. Currently, the product has sales of $9,300,000. The costs of materials are $7,100,000, labor costs are $1,200,000, and overhead costs are $450,000. What are the effects on net income of the two alternative strategies?
The change in net income after the 16% increase in sales is . (Enter your response as a whole number.)
The change in net income due to the reduction in material costs is $nothing. (Enter your response as a whole number.)
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