Chapter 6, Problem 6.1CTDC

Suppose you manage Campbell Appliance. The store’s summarized financial statements for 2017, the most recent year, follow:

CAMPBELL APPLIANCE Income Statement Year Ended December 31, 2017
Sales	$800,000
Cost of Goods Sold	660,000
Gross profit	140,000
Operating Expenses	100,000
Net Income	$ 40,000

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.