When does a business have to increase its sales annually to net as much as it did in the previous year?

Question

Quizplus · Accepted Answer

If profits are not rising as fast as sales, then the business would need to increase its sales annually to make up for the difference and still net as much as it did in the previous year. Option A cannot be the correct choice, as if profits are rising as fast as sales, then the business would not necessarily need to increase its annual sales to maintain its net income. Option C is not necessarily true either, as sales trending upward does not necessarily mean that profits are rising at the same rate. Therefore, the best choice is B.

When Does a Business Have to Increase Its Sales Annually