Which of the following will not improve a company's gross profit percentage?
A)An increase in the sales price.
B)A decrease in the cost of inventory.
C)A decrease in the shipping cost for merchandise purchased.
D)Collecting cash from customers in advance.

Question

Quizplus · Accepted Answer

Gross profit percentage = [(Net Sales − Cost of Goods Sold)÷ Net Sales] × 100
An increase in increase in the sales price,a decrease in the cost of inventory,and/or a decrease in the shipping cost for merchandise purchased would improve a company's gross profit percentage.It would not be impacted by the collection of cash from customers.

Which of the Following Will Not Improve a Company's Gross