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Berto Motors finanical statement shows that their total overhead expenses are operating nearly 20% over the suggested guideline, and their Net Profit % of sales

Berto Motors finanical statement shows that their total overhead expenses are operating nearly 20% over the suggested guideline, and their Net Profit % of sales is at 0.71%, when it should be between 2%-3%.
What would you do/look for in order to determine any possible improvements, that could be made?
What would you investigate?

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