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The Foodidivaian of Gaicia Compsor teperts the folowing for the ruarent yer. Gatcia waris to othleve at leaet a 10n prots margin next yeat. Two
The Foodidivaian of Gaicia Compsor teperts the folowing for the ruarent yer. Gatcia waris to othleve at leaet a 10n prots margin next yeat. Two atemenve axategies are proposed whil rot change. Strategy 2 Develot a move efficient manufactuing procest. Thes wil decieash cost of oopar said by 3154,500. For each strategy, compute the proft margh expected tor nest yeac. b. Which xtrasegy thoula Carcia choose bassed on expected prots margk? Compiste thils question by entering your answars in the tabs below. The Food division of Garcia Company reports the following for the current year. Garcia wants to achieve at lesst a 10% proft margin nextyeac. Two ahernative strategles are proposed. Strategy 1: increase advertising expenses by $225.000. The company expects this to increase sales by $750.000, Cost of goods sold will not change. Strategy 2. Develop a mote efficient manufacturing process. This wirl decreosp cost of goods sold by \$\$154 500 a. For each strategx compute the profit margin expected for next yeat, b. Which suategy should Garcia choose based on expected prodt margin? Complete this qunation by nitaring your answers in the tabs below
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