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

2330 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

A large, well established business’ annual accounts read that their long-term liabilities are £6.3 million, and their capital employed is £11.2 million. Evaluate their gearing ratio.


Describe each of the 4 elements of Tuckmans (1965) effective team development model.


explain porters five forces and how they encourage or discourage a business to join a market?


What are the benefits for Coca-Cola to implement a more CSR strategy in their production line.


We're here to help

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

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences