Suppose you manage Campbell Appliance. The store’s summarized financial ­statements for 2015, the most recent year, follow:

Assume that you need to double net income. To accomplish your goal, it will be very difficult to raise the prices you charge because there is a discount appliance store nearby. Also, you have little control over your cost of goods sold because the appliance manufacturers set the amount you must pay.

Identify several strategies for doubling net income.

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CAMPBELL APPLIANCE Income Statement Year Ended December 31, 2015 Sales $ 800,000 Cost of Goods Sold 660,000 Gross Profit $ 140,000 Operating Expenses 100,000 Net Income $ 40,000 CAMPBELL APPLIANCE Balance Sheet December 31, 2015 Liabilities and Stockholders' Equity S 35,000 Assets $ 30,000 ACCOunts Payable 75,000 Note Payable Cash Inventories 280,000 Land and Buildings, Net 360,000 Total Llabilities 315,000 Stockholders' Equlty 150,000 Total Assets $ 465,000 Total Llabilites and Stockholders' Equity $ 465,000