The sales of one of the products antiglare PC filters- of Arabeto LLC company have been decreasing due to PC manufacturers integrating it in their products and this has been eating into Arabeto's market share. When last year budgets were prepared Arabeto increased their research budget so that replacement or new products could be developed. However, most recent results have shown that sales of anti-glare filters decreased more than expected. As a result, the company may have shortage of funds. Top management has asked to reduce all expenses by 10% to compensate for the reduced sales. Summary budget information is as under: Page 2 of DM DL TOTAL Insuranc Deprecia machine Sales Office Factory tion repirs salaries salaries slaries(Indir ect Labour) 50,000 90,000 30,000 50,000 80,000 50,000 240,000 110,000 700,000 Instructions Using the information above answer the following questions: (a) What are the implications of reducing each of the costs? (b) Based on your analyses in (a) what do you think is the best way to obtain the 70,000 in cost savings requested? Be specific. (c) Are there any costs which cannot or should not be reduced? Why