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  3. a company is able to implement one of two strategi

A company is able to implement one of two strategies regarding a particular product: hire...

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Accounting

A company is able to implement one of two strategies regarding a particular product: hire a marketing firm to increase sales 19% or assign a product procurement manager who can reduce material cost for the product by 8%. Currently, the product has sales of $9,000,000. The costs of materials are $6,200,000, labor costs are $1,400,000, and overhead costs are $550,000. What are the effects on net income of the two alternative strategies?
The change in net income after the 19% increase in sales is?
The change in net income due to the reduction in material costs is?
Based on the change in net income, the company should hire a marketing firm or assign a product procurement manager?

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