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

2493 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

Explain why a business would choose a price skimming strategy? (6)


What is the difference between product and market orientation?


What is Price Elasticity of Demand?


How do you calculate capacity utilisation for a restaurant that has 65 seats but only 42 people dining each night?


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:

© 2025 by IXL Learning