Question

Bill owns a company (Bill’s Gates) that manufactures fence panels. Bill’s Gates had a net profit margin last quarter of 18%. Which of the following actions will not help Bill increase his net profit margin this year, assuming he sells the same number of fence panels?
a.
Increase the price per panel.
b.
Use cheaper lumber to construct panels.
c.
Offer panels in a “buy one get one free” special.
d.
Reduce workforce and labor costs to construct panels.


Please select the best answer from the choices provided

A
B
C
D
Mark this and return

Answer 1

C

Offering a "buy one get one free" reduces average revenue per panel (and likely profit per panel) and would not increase net profit margin.