The gross profit percentage is the ratio to watch if you are worried about increased competition. If the company lowers its prices to retain market share without lowering its cost of goods sold, its gross profit percentage will:_______.

Respuesta :

Answer:

decrease

Explanation:

As we know the gross profit is the net of sales and cost of goods sold.

Gross profit = Sales - Coast of Goods Sold

Lowering the price will decrease the sales value because sales is calculated by multiplying selling price per unit to number of units sold.

If we keep the cost of goods sold constant, then decrease in price will directly effect the gross profit and will reduce it too.

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