If a retailer's gross margin percent is on plan, however the retailer is tracking below plan for net operating profit margin plan, which of these options would help improve their situation?
A) increase cost of goods
B) increase markdowns
C) increase payroll
D) decrease selling, general and administrative expenses
E) borrowing money from a lender

Question

Quizplus · Accepted Answer

Since gross margin - selling, general and administrative expenses = net operating profit then decreasing the SG&A would improve the net operating profit margin plan.

If a Retailer's Gross Margin Percent Is on Plan, However