A business has to increase its sales annually to net as much as it did in the previous year when
A)profits are rising as fast as sales.
B)profits are not rising as fast as sales.
C)sales are trending upward.
D)sales and profits are trending down at the same rate.

Question

Quizplus · Accepted Answer

When profits are not rising as fast as sales, a business must increase its sales annually to net the same amount as it did the previous year, because the profit margin (profit per sale) is decreasing.

A Business Has to Increase Its Sales Annually to Net