Question

Bill owns a company (Bill’s Gates) that manufactures fence panels. Bill’s Gates had a net profit margin last quarter of 18%. Which of the following actions will not help Bill increase his net profit margin this year, assuming he sells the same number of fence panels? a. Increase the price per panel. b. Use cheaper lumber to construct panels. c. Offer panels in a “buy one get one free” special. d. Reduce workforce and labor costs to construct panels.

Answer 1

C, just took the quiz

Explanation:

Answer 2

c. Offer panels in a “buy one get one free” special.

Explanation:

a. Price increase: If he sells the same number of fence panel, his profit margin WILL increase because his revenue will increase.

b. Use cheaper lumber: If he sells the same number of fence panel, his profit margin WILL increase because he will reduce expenses.

c: Buy 1, get 1 free: If he sells the same number of fence panel, his profit margin WILL NOT increase. Indeed, it will decrease by giving lots of FREE panels.

d. Optimize resources: If he sells the same number of fence panel, his profit margin WILL increase because he will reduce expenses.