A decline in gross profit margin can be caused by selling fewer units to customers.

Name: A decline in gross profit margin can be caused by selling fewer units to customers.
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Question

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Gross profit margin is a percentage of gross profit to sales. It indicates the cents that are available from each dollar of sales that are available to cover operating costs and contribute to profits. A change in the number of units sold does not change the GPM unless the selling price or cost of goods sold changes.

A Decline in Gross Profit Margin Can Be Caused by Selling