Planners have determined that sales will increase by 20% next year, and that the profit margin will remain at 10% of sales.Which of the following statements is correct?

Name: Planners have determined that sales will increase by 20% next year, and that the profit margin will remain at 10% of sales.Which of the following statements is correct?
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Question

Quizplus · Accepted Answer

Since sales are increasing by 20% and the profit margin remains constant at 10%, the profit, which is a percentage of sales, will also increase by 20%.

Planners Have Determined That Sales Will Increase by 20% Next