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

Sales	$ 4,210,000
Cost of goods sold	2,870,000
Gross profit	1,340,000
Expenses	1,175,000
Income	$ 165,000

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 $670,000. Cost of goods sold will not change.

Strategy 2: Develop a more efficient manufacturing process. This will decrease cost of goods sold by $129,700.

For each strategy, compute the profit margin expected for next year.