A Shift from High-Margin Sales to Low-Margin Sales

question 73

Multiple Choice

A shift from high-margin sales to low-margin sales

• A) may decrease net income, even though there is an increase in total units sold.
• B) will always decrease net income.
• C) will always increase net income.
• D) will always increase units sold.

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Definitions:

Voluntary Delivery

The deliberate and willing transfer of possession of an item from one party to another without coercion.

Common Carriers

Entities that provide transportation services to the general public for a fee.

Absolutely-Strictly-Liable

Refers to a legal standard where a party is held responsible for damages or harm without the need to prove negligence or fault.

Bailed Goods

Refers to items that are in the possession of someone other than the owner, under a bailment agreement, where the recipient (bailee) is responsible for the care and return of the goods.