15 - If a company's EBIT margin is increasing while its net profit margin is decreasing, which of the following mayhave caused this situation?a) OThe rate of increase in general administrative expense is higher than the rate of increase in salesb) OThe rate of increase in production costs is higher than the rate of increase in salesc) OThe rate of increase in marketing expense is higher than the rate of increase in salesd) O The rate of increase in interest expense is higher than the rate of increase in sales

EBIT: It is the number of earnings before interest and tax of the organization. It includes all the…

15 - If a company's EBIT margin is increasing while its net profit margin is decreasing, which of the following m have caused this situation? =) O he rate of increase in general administrative expense is higher than the rate of increase in sales The rate of increase in production costs is higher than the rate of increase in sales =) O The rate of increase in marketing expense is higher than the rate of increase in sales

15 - If a company's EBIT margin is increasing while its net profit margin is decreasing, which of the following m have caused this situation? =) O he rate of increase in general administrative expense is higher than the rate of increase in sales The rate of increase in production costs is higher than the rate of increase in sales =) O The rate of increase in marketing expense is higher than the rate of increase in sales

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 12QTD

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