As a result of a change in strategy to selling dif
As a result of a change in strategy to selling differentiated products at premium prices, a company’s gross margin ratio increased by 5% (i.e., from 35% to 40%). The most likely effect on the company’s operating margin ratio as a result of the change in strategy would be an increase:
A. equal to 5%.
B. less than 5%.
C. greater than 5%.
参考解答
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2024-11-11 14:42:43
Ans:B.
A strategy of selling differentiated products at premium prices usually requires additional advertising or research and development to support the differentiating features, therefore, the effect on operating profit is normally less than the effect on gross profit margin.
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