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The housewares department in a specialty store had net sales of $1,500,000. The direct expenses during the period under consideration were: The gross margin achieved

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The housewares department in a specialty store had net sales of $1,500,000. The direct expenses during the period under consideration were: The gross margin achieved during this time was 34.0\%. After reviewing this expense and net profit performance, management decided that expenses must be reduced. The manager was given the choice of either reducing the advertising budget to a maximum of $50,000 or reducing selling salaries by $50,000. Which is the best plan of action that would impact profitability? Why? Explore the two options mathematically, and then state your choice. Justify your decision. Discuss the impact your strategy will have on net profit

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