Check my work 5 The Food division of Garcia Company reports the following for the current year. Sales $ 4,390, 000 2.77 Cost of goods sold points 2,930, 000 Gross profit 1 , 460 , 008 Expenses 1, 197, 000 8 02:47:13 Income $ 263, 000 Garcia wants to achieve at least a 10% profit margin next year. Two alternative strategies are proposed. e Boo Strategy 1: Increase advertising expenses by $225,000. The company expects this to increase sales by $730,000. Cost of goods sold will not change. Strategy 2: Develop a more efficient manufacturing process. This will decrease cost of goods sold by $132,100. a. For each strategy, compute the profit margin expected for next year b. Which strategy should Garcia choose based on expected profit margin? Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each strategy, compute the profit margin expected for next year. (Round your answers to one decimal place.) Profit margin Strategy 1 Strategy 2 % Required 1 Required 2 Which strategy should Garcia choose based on expected profit margin? Which strategy should Garcia choose based on expected profit margin? 6 Check my work Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and shows a loss utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it points 8 02:46:37 For Year Ended December 31 $ 101, 606 $ 84 , 860 cost of goods sold 44, 275 46: 758 Gross profit 57 , 325 BOOK Advertising Depreciation-Equipment 19, 708 Supplies use 17, 680 7, 065 5: 960 Utilities Total expenses 3.015 Income (loss) $ 10 , 448 on to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a departmental contribution to overhead report . Departmental Contribution to Overhead For Year Ended December 31 Combined Direct expenses Total direct expenses Departmental contribution to overhead Required 1 Required 2 Based on contribution to overhead, should the electric guitar department be eliminated? Based on contribution to overhead, should the electric guitar department be eliminated