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
Answered by Alex R. Business Studies tutor

2547 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

Evaluate the various methods of financing business


What are 'shareholder ratios' and how do you work them out?


What are the five levels in Maslow's Hierarchy of Needs?


What are the main approaches to motivate a workforce?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning