The Food division of Garcia Company reports the following for the current year.

Sales	$ 4,360,000
Cost of goods sold	2,700,000
Gross profit	1,660,000
Expenses	1,461,000
Income	$ 199,000

Garcia wants to achieve at least a 10% profit margin next year. Two alternative strategies are proposed. Strategy 1: Increase advertising expenses by $225,000. The company expects this to increase sales by $740,000. Cost of goods sold will not change. Strategy 2: Develop a more efficient manufacturing process. This will decrease cost of goods sold by $149,800. a. For each strategy, compute the profit margin expected for next year. b. Which strategy should Garcia choose based on expected profit margin?