Ryan and Sam are discussing how to compute the material loading percentage for the company. Sam says they should leave the desired profit margin out of the equation, but Ryan thinks it is necessary. Which of them is correct?

Select answer from the options below

Sam, because the material loading percentage will be higher if the desired profit margin is not factored in.

Ryan, because the material loading percentage will be higher if the desired profit margin is not factored in.

Ryan, because the material loading percentage will be lower if the desired profit margin is not factored in.

Sam, because the desired profit margin is not needed to calculate the material loading percentage.