Please help me answering the following question, showing your work. Thank you

Three years ago, Donna Clark and her brother-in-law Kenneth Garcia opened Shamrock Department Store. For the first 2 years, business was good, but the following condensed income statement results for 2027 were disappointing. SHAMROCK DEPARTMENT STORE Projected Income Statement For the Year Ended December 31, 2028 $ $ $ Donna believes the problem lies in the relatively low gross profit rate of 20%. Kenneth believes the problem is that operating expenses are too high. Donna thinks the gross profit rate can be improved by making two changes. (1) Increase average selling prices by 15%; this increase is expected to lower sales volume so that total sales dollars will increase only 4%. (2) Buy merchandise in larger quantities and take all purchase discounts. These changes to purchasing practices are expected to increase the gross profit rate from its current rate of 20% to a new rate of 25%. Donna does not anticipate that these changes will have any effect on operating expenses. Kenneth thinks expenses can be cut by making these two changes. (1) Cut 2028 sales salaries of $72,750 in half and give sales personnel a commission of 2% of net sales. (2) Reduce store deliveries to one day per week rather than twice a week; this change will reduce 2028 delivery expenses of $48,500 by 40%. Kenneth feels that these changes will not have any effect on net sales. Donna and Kenneth come to you for help in deciding the best way to improve net income. With the class divided into groups, answer the following