Which of the following would most likely increase the net profit margin ratio?
A)An increase in the unit selling price.
B)A decrease in the overall sales volume.
C)An increase in operating expenses.
D)An increase in cost of goods sold.

Question

Quizplus · Accepted Answer

An increase in the unit selling price would lead to a higher gross profit margin, which in turn would increase the net profit margin ratio. The other options (B, C, D) would either decrease the gross profit margin or increase the operating expenses, thus decreasing the net profit margin ratio.

Which of the Following Would Most Likely Increase the Net