Suggest 3 reasons why a rise in annual sales might not result in a rise in net profit

-         higher fixed costs meaning diminished profit margin -         sales may have been “export” which means need to factor tariffs into income statement-         sales may be related to promotional campaign that yields lower profit margin

AR
Answered by Alex R. Business Studies tutor

2589 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

In what way does the seasonality affect operations of a busness?


Assess the consequences to a business, such as spirit airlines of selling tickets online


What is Maslow's hierarchy of needs? will it be in the exam?


To what extent does taking out a franchise reduce the benefits of being an independent sole trader?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning