A company is able to implement one of two strategies regarding a particular product: hire a marketing firm to increase sales 16% or assign a product procurement manager who can reduce material cost for the product by 4%. Currently, the product has sales of$10,300,000. The costs of materials are $6,200,000 labor costs are $1,450,000 and overhead costs are $550,000. What are the effects on net income of the two alternative strategies?
( please show all work and formulas)