Which one of the following will increase the profit margin of a firm, all else held constant?
A)Increase in interest paid
B)Increase in fixed costs
C)Increase in depreciation expense
D)Decrease in the tax rate
E)Decrease in sales

Question

Quizplus · Accepted Answer

A decrease in the tax rate will reduce the amount of taxes paid, thereby increasing the net income and consequently the profit margin, assuming all other factors remain constant.

Which One of the Following Will Increase the Profit Margin