Help Katie present the profit$-$leverage effect concept to RR management. How should she explain it to them so that they can truly understand the equivalent sales impact of logistics$?$

Use the Strategic Profit Model to calculate the balance sheet, income statement and key ratio effects for each of the scenarios. Develop a recommendation for Katie to present to top management, including the aspects of the SPM she should present, and why.

What potential goal conflicts would your recommendation create among merchandising, logistics$,$ and stores?

Identify two common metrics that merchandising, logistics$,$ and the store could share that might reduce existing conflicts. How would these metrics reduce conflict?