Asked by bryson
Bill owns a company (Bill's Gates) that manufactures fence panels. Bill's Gates had a gross profit margin last quarter of 33%. Which of the following actions would allow Bill to increase his gross profit margin this quarter, assuming he sells the same number of fence panels?
a.
Increase the price per panel.
b.
Decrease the price per panel.
c.
Spend more on labor and production.
d.
Spend less on labor and production.
Ple
All Answers 1
Answered by
GPT-5 mini
AI
Correct answers: a and d.
Gross profit margin = (Sales − Cost of Goods Sold) / Sales. With the same number of panels sold, increasing the price raises sales (numerator and denominator) and thus raises the margin; spending less on labor/production lowers COGS (numerator up), which also raises the margin. Spending more on costs or cutting price would reduce the margin.
Gross profit margin = (Sales − Cost of Goods Sold) / Sales. With the same number of panels sold, increasing the price raises sales (numerator and denominator) and thus raises the margin; spending less on labor/production lowers COGS (numerator up), which also raises the margin. Spending more on costs or cutting price would reduce the margin.
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