A change in sales has no effect on margin and turnover.

Question

Quizplus · Accepted Answer

Sales, margin, and turnover are all interconnected. A change in sales can affect both the margin (profit per unit sold) and turnover (number of units sold). For example, an increase in sales may lead to a decrease in margin if the cost of production increases due to increased demand. Conversely, a decrease in sales may lead to an increase in margin if fixed costs can be better distributed over a reduced number of units sold.

A Change in Sales Has No Effect on Margin and Turnover