A 1% improvement in price results in a(n) ______ improvement in operating profits.
A) 1%
B) 3%
C) 5%
D) 8%
E) 11%

Name: A 1% improvement in price results in a(n) ______ improvement in operating profits. A) 1% B) 3% C) 5% D) 8% E) 11%
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Question

Quizplus · Accepted Answer

A 1% improvement in price, assuming volume remains constant and costs do not change, typically results in an 11% improvement in operating profits. This is because the price increase goes straight to the bottom line, significantly leveraging profit improvement.

A 1% Improvement in Price Results in A(n) ______ Improvement