Which one of the following will increase the profit margin of a firm,all else 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

Decrease in the tax rate will directly increase the profit margin of the firm as it will reduce the amount of tax paid on the firm's earnings.

Which One of the Following Will Increase the Profit Margin