Application: Using the expanded version of the strategic profit model, start on the right side and in each box place an (t) for increase, (I) for decrease and a () for no change, to indicate what is likely to happen to the manufacturers' sales, costs, assets, etc. when the manufacturer shifts from a traditional channel strategy to a supply chain management strategy. t sales Gross margin COGS Net profit Net profit margin Variable expenses Total expenses Return on Financial net worth leverage Return on assets Sales Net Sales Income taxes Fixed ex S(GM- TE) X Inventory Sales Netprofit = Total Net worth Asset turnover Net Net Total assets Current assets AR Total assets Total assets Other current Fixed assets