Suggest 3 reasons why a rise in annual sales might not result in a rise in net profit
- higher fixed costs meaning diminished profit margin - sales may have been “export” which means need to factor tariffs into income statement- sales may be related to promotional campaign that yields lower profit margin
AR
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The directors of a well-known food manufacturing PLC have announced that they are moving production from the UK to Europe in order to reduce costs. This will result in the loss of 115 jobs. To what extent is this decision likely to benefit the business’