If sales decrease and financial leverage increases, we can say with certainty that the profit margin on sales will decrease.

Name: If sales decrease and financial leverage increases, we can say with certainty that the profit margin on sales will decrease.
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Question

Quizplus · Accepted Answer

A decrease in sales and an increase in financial leverage do not necessarily guarantee a decrease in profit margin, as other factors like cost management and pricing strategies can influence the profit margin.

If Sales Decrease and Financial Leverage Increases, We Can Say