Assuming the number of units sold does not change, if a company wants to increase its profit margin it can do any of the following except
A)raise the selling price.
B)decrease the percentage markup on cost.
C)reduce its cost of goods sold.
D)reduce its operating expenses.

Question

Quizplus · Accepted Answer

Decreasing the percentage markup on cost would actually lower the profit margin rather than increase it, as it would reduce the difference between the cost and the selling price without reducing the cost itself. Choices A, C, and D all directly contribute to increasing the profit margin by either increasing revenue (A) or reducing costs (C and D).

Assuming the Number of Units Sold Does Not Change, If