177k views
1 vote
Last year Madd Hatter, Inc. bought baseball caps for $3 each and sold them for $9. This year, the company’s supplier is charging $4 for each cap, but Madd Hatter cannot raise its prices because competition is too tough. If Madd Hatter continues to sell caps for $9, its gross profit per cap will __________ and its gross profit ratio will __________.

1 Answer

2 votes
The gross profit per cap will decrease and the gross profit ratio will decline
User Rutesh Makhijani
by
7.5k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.