Accounting for IGCSE & O level - Advanced Principles (Section 3 - No. 4)
Which of the following is NOT a factor that will increase the gross profit margin?
An increase in revenue from sales
A reduction in expenses
Reducing the selling price of each item
Selling items at a price greater than their cost
Explication
Reducing the selling price would decrease the gross profit margin. The other options are all factors that increase the gross profit margin.