Question
A company is able to implement one of two strategies regarding a particular product: hire a marketing firm to increase sales 24% or assign a
A company is able to implement one of two strategies regarding a particular product: hire a marketing firm to increase sales 24% or assign a product procurement manager who can reduce material cost for the product by 8%. Currently, the product has sales of $10,900,000. The costs of materials are $8,000,000, labor costs are $1,450,000, and overhead costs are $750,000. What are the effects on net income of the two alternativestrategies?
The change in net income after the 24% increase in sales is ______________ (Enter your response as a whole number.)
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