Assume that you are performing exceptionally well in your new supply management position. Your goal was to reduce material costs by 8%, and your annual review indicates that you have achieved this goal. Use the values below to calculate the cost of goods sold, net income, and total assets based on you achieving the 8% goal.

Revenue (Sales):	$53,620,000
Cost of Goods Sold:	$34,927,000
Gross Profit:	$18,693,000
Other Costs:	$15,285,000
Net Income:	$3,408,000

You are working for a retailer, so your material costs are very high. This makes the impact of cost savings even greater! In this scenario, your material costs are 85% of the cost of goods sold. With the 8% decrease, what is the new estimated cost of goods sold?

What is the estimated new net income?

What is the new profit margin percentage assuming the 8% decrease in material costs (round to the nearest 1/100)?