Questions and Answers
Which of the following actions would NOT increase a company's gross profit margin?
Which of these strategies focuses on maximizing profits from existing customers?
What does 'improving productivity and efficiencies' refer to in the context of increasing gross profit margin?
Which of the following is NOT a strategy for increasing gross profit margin?
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How does increasing sales prices without increasing the cost of goods sold affect the gross profit margin?
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Study Notes
Increasing Gross Profit Margin
- A company can enhance its gross profit margin and profitability by implementing various strategies.
Strategies to Increase Gross Profit Margin
- Reduce operating expenses without decreasing sales prices to boost gross profit margin.
- Increase prices without increasing the cost of doing business to widen the profit margin.
- Improve productivity and efficiencies to minimize costs and maximize revenue.
- Rely on existing customers to increase average order value, leading to higher revenue and profit margin.
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Description
Discover ways to boost gross profit margin and profitability by reducing expenses, increasing prices, improving productivity, and relying on existing customers. Learn effective strategies to maximize revenue and minimize costs.
