A retailer can increase its profit margin by ________.
A) increasing its financial leverage
B) increasing debt
C) increasing its marketing expenditures
D) lowering its cost of goods sold

Question

Quizplus · Accepted Answer

By lowering its cost of goods sold, a retailer can increase its profit margin. This can be done by negotiating better pricing with suppliers, streamlining operations to reduce overhead costs, or offering products with higher profit margins. Increasing financial leverage or debt can result in higher interest expenses, while increasing marketing expenditures may attract more customers but also increase operating costs.

A Retailer Can Increase Its Profit Margin by ________