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.An increase in the unit selling price will increase net income by a greater amount proportionately relative to the increase in net sales.

Question

Quizplus · Accepted Answer

An increase in the unit selling price will increase the net profit margin ratio because the increase in net income will be proportionately greater than the increase in net sales. This means that for each dollar of sales, a higher percentage will be left over as profit.

Which of the Following Would Most Likely Increase the Net